Problem 3-3 (Static) Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2024, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals Additional Information: Debits $ 45,000 Credits 110,000 60,000 200,000 9,000 90,000 420,000 $ 100,000 110,000 60,000 000 OT 75,000 130,000 20,000 240,000 300,000 129,000 $ 1,054,000 $ 1,054,000 1. The investment in equity securities account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale. 3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23.000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $30.000 note due in six months. b. a $50,000 note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025. 5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 100.000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized. Required: Prepare a classified balance sheet for the Almway Corporation at December 31, 2024. Note: Amounts to be deducted should be Indicated by a minus sign.
Problem 3-3 (Static) Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2024, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals Additional Information: Debits $ 45,000 Credits 110,000 60,000 200,000 9,000 90,000 420,000 $ 100,000 110,000 60,000 000 OT 75,000 130,000 20,000 240,000 300,000 129,000 $ 1,054,000 $ 1,054,000 1. The investment in equity securities account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale. 3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23.000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $30.000 note due in six months. b. a $50,000 note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025. 5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 100.000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized. Required: Prepare a classified balance sheet for the Almway Corporation at December 31, 2024. Note: Amounts to be deducted should be Indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 3-3 (Static) Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2024, post-closing trial balance for Almway Corporation.
Account Title
Cash
Investment in equity securities
Accounts receivable
Inventory
Prepaid insurance (for the next 9 months)
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Patent (net)
Accounts payable
Notes payable
Interest payable
Bonds Payable
Common stock
Retained earnings
Totals
Additional Information:
Debits
$ 45,000
Credits
110,000
60,000
200,000
9,000
90,000
420,000
$ 100,000
110,000
60,000
000 OT
75,000
130,000
20,000
240,000
300,000
129,000
$ 1,054,000
$ 1,054,000
1. The investment in equity securities account includes an investment in common stock of another corporation of $30,000 which
management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.
2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.
3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23.000 restricted in a
three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $30.000 note due in six months.
b. a $50,000 note due in six years.
c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025.
5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
6. The common stock account represents 100.000 shares of no par value common stock issued and outstanding. The corporation
has 500,000 shares authorized.
Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2024.
Note: Amounts to be deducted should be Indicated by a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F125360d6-6037-4453-8746-469db7809067%2F41543ae7-5608-4b9c-a0c1-fb0d03ff6b48%2Fbsc72y8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3-3 (Static) Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2024, post-closing trial balance for Almway Corporation.
Account Title
Cash
Investment in equity securities
Accounts receivable
Inventory
Prepaid insurance (for the next 9 months)
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Patent (net)
Accounts payable
Notes payable
Interest payable
Bonds Payable
Common stock
Retained earnings
Totals
Additional Information:
Debits
$ 45,000
Credits
110,000
60,000
200,000
9,000
90,000
420,000
$ 100,000
110,000
60,000
000 OT
75,000
130,000
20,000
240,000
300,000
129,000
$ 1,054,000
$ 1,054,000
1. The investment in equity securities account includes an investment in common stock of another corporation of $30,000 which
management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.
2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.
3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23.000 restricted in a
three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $30.000 note due in six months.
b. a $50,000 note due in six years.
c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025.
5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
6. The common stock account represents 100.000 shares of no par value common stock issued and outstanding. The corporation
has 500,000 shares authorized.
Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2024.
Note: Amounts to be deducted should be Indicated by a minus sign.
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