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Question & Answer: The following is a December 31, 2016, post-closing trial balance for Almway Corporation. The investment account includes an investment in commo…..

The following is a December 31, 2016, post-closing trial balance for Almway Corporation Account Title Cash Investments Accounts receivable Inventories Prepaid insurance Debits 65,000 130,000 70,000 210,000 8,000 110,000 430,000 Credits Buildings Accumulated depreciation- 110,000 buildings Equipment Accumulated depreciation- 120,000 70,000 equipment 20,000 Patents (net of amortization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings 95,000 160,000 30,000 250,000 330,000 118,000 Totals 1,163,000 1163,000 Additional information: 1. The investment account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used 3. The cash account includes $25,000 restricted in a fund to pay bonds payable that 4. The notes payable account consists of the following and is currently listed for sale mature in 2019 and $33,000 set aside in a three-month Treasury bill a. a $40,000 note due in six months b. a $60,000 note due in six years. c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2017 The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000 6. The common stock account represents 110,000 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, 2016 Amounts to be deducted should be indicated by a minus sign.)

The following is a December 31, 2016, post-closing trial balance for Almway Corporation. The investment account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2019 and $33,000 set aside in a three-month Treasury bill. The notes payable account consists of the following: a. a $40,000 note due in six months. b. a $60,000 note due in six years. c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2017. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000. The common stock account represents 110,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized. Prepare a classified balance sheet for the Almway Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

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Question & Answer: The following is a December 31, 2016, post-closing trial balance for Almway Corporation. The investment account includes an investment in commo…..
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Almway Corporation
Balance Sheet
Assets
Current assets
Cash and cash equivalents 40000
short term investments 90,000
accounts receivable,net of allowance 70,000
inventories 210,000
prepaid insurance 8,000
total current assets 418000
investments
Marketable securities 40,000
land held for sale 35,000
bond sinking fund 25,000
total investments 100,000
property,plant & Equipment
land 75000
buildings 430,000
Equipment 120,000
625000
less :Accumulated depreciation 180,000
net property,plant & Equipment 445,000
intangible assets
patents 20,000
total assets 983,000
liabilities & Stockholders Equity
current liabilities
accounts payable 95,000
interest payable 30,000
current maturities of long term debt 12,000
notes payable 40,000
total current liabilities 177,000
long term liabilities
notes payable 108000
bonds payable 250,000
total long term liabilities 358,000
shareholders Equity
common stock 330,000
Retained earnings 118,000
total shareholder’s Equity 448,000
total liabilities & Stockholders Equity 983,000

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