question archive The following is a December 31, 2013, post-closing trial balance for Almway Corporation
The following is a December 31, 2013, post-closing trial balance for Almway Corporation
Subject:AccountingPrice: Bought3
The following is a December 31, 2013, post-closing trial balance for Almway Corporation. Account TitleDebitsCredits Cash51,000 Investments116,000 Accounts receivable63,000 Inventories203,000 Prepaid insurance9,000 Land96,000 Buildings423,000 Accumulated depreciationAc€??buildings103,000 Equipment113,000 Accumulated depreciationAc€??equipment63,000 Patents (net of amortization)13,000 Accounts payable81,000 Notes payable139,000 Interest payable23,000 Bonds payable243,000 Common stock309,000 Retained earnings126,000 Totals1,087,0001,087,000Additional information:1.The investment account includes an investment in common stock of another corporation of $33,000 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 $28,000 that the company has not used and is currently listed for sale.3.The cash account includes $18,000 set aside in a fund to pay bonds payable that mature in 2016 and $26,000 set aside in a three-month Treasury bill.4.The notes payable account consists of the following:a.a $33,000 note due in six months.b.a $53,000 note due in six years.c.a $53,000 note due in 5 annual installments of $10,600 each, with the next installment due February 15, 2014.5.The $63,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000.6.The common stock account represents 103,000 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, 2013.
