The following is a December 31, 2024, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Debits $ 49,000 Credits 114,000 62,000 202,000 Prepaid insurance (for the next 9 months) 5,000 Land 94,000 Buildings 422,000 Accumulated depreciation-buildings $ 102,000 Equipment Accumulated depreciation-equipment 112,000 62,000 Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings 12,000 79,000 136,000 22,000 242,000 306,000 123,000 Totals Additional information: $ 1,072,000 $ 1,072,000 1. The investment in equity securities account includes an investment in common stock of another corporation of $32,000 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 $27,000 that the company has not used and is currently listed for sale. 3. The cash account includes $17,000 restricted in a fund to pay bonds payable that mature in 2027 and $25,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $32,000 note due in six months. b. a $52,000 note due in six years. c. a $52,000 note due in five annual installments of $10,400 each, with the next installment due February 15, 2025. 5. The $62,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $10,000. 6. The common stock account represents 102,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 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. Current assets: Cash Restricted cash Investment in equity securities Accounts receivable Allowance for uncollectible accounts Inventory Prepaid insurance Net accounts receivable ALMWAY CORPORATION Balance Sheet At December 31, 2024 Assets 0

The following is a December 31, 2024, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Debits $ 49,000 Credits 114,000 62,000 202,000 Prepaid insurance (for the next 9 months) 5,000 Land 94,000 Buildings 422,000 Accumulated depreciation-buildings $ 102,000 Equipment Accumulated depreciation-equipment 112,000 62,000 Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings 12,000 79,000 136,000 22,000 242,000 306,000 123,000 Totals Additional information: $ 1,072,000 $ 1,072,000 1. The investment in equity securities account includes an investment in common stock of another corporation of $32,000 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 $27,000 that the company has not used and is currently listed for sale. 3. The cash account includes $17,000 restricted in a fund to pay bonds payable that mature in 2027 and $25,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $32,000 note due in six months. b. a $52,000 note due in six years. c. a $52,000 note due in five annual installments of $10,400 each, with the next installment due February 15, 2025. 5. The $62,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $10,000. 6. The common stock account represents 102,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 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. Current assets: Cash Restricted cash Investment in equity securities Accounts receivable Allowance for uncollectible accounts Inventory Prepaid insurance Net accounts receivable ALMWAY CORPORATION Balance Sheet At December 31, 2024 Assets 0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 7RE: Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith...

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