The following is a December 31, 2021, post-closing trial balance for Almway Corporation.  Account Title   Debits   Credits Cash $ 45,000         Investment in equity securities   110,000         Accounts receivable   60,000         Inventory   200,000         Prepaid insurance (for the next 9 months)   9,000         Land   90,000         Buildings   420,000         Accumulated depreciation—buildings       $ 100,000   Equipment   110,000         Accumulated depreciation—equipment         60,000   Patent (net)   10,000         Accounts payable         75,000   Notes payable         130,000   Interest payable         20,000   Bonds Payable         240,000   Common stock         300,000   Retained earnings         129,000   Totals $ 1,054,000   $ 1,054,000     Additional information: 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. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2024 and $23,000 restricted in a three-month Treasury bill. The notes payable account consists of the following: a $30,000 note due in six months. a $50,000 note due in six years. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2022. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 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, 2021. (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
 

Account Title   Debits   Credits
Cash $ 45,000        
Investment in equity securities   110,000        
Accounts receivable   60,000        
Inventory   200,000        
Prepaid insurance (for the next 9 months)   9,000        
Land   90,000        
Buildings   420,000        
Accumulated depreciation—buildings       $ 100,000  
Equipment   110,000        
Accumulated depreciation—equipment         60,000  
Patent (net)   10,000        
Accounts payable         75,000  
Notes payable         130,000  
Interest payable         20,000  
Bonds Payable         240,000  
Common stock         300,000  
Retained earnings         129,000  
Totals $ 1,054,000   $ 1,054,000  
 


Additional information:

  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 2024 and $23,000 restricted in a three-month Treasury bill.
  4. The notes payable account consists of the following:
  1. a $30,000 note due in six months.
  2. a $50,000 note due in six years.
  3. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2022.
  1. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
  2. 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, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education