2/7/2021 Assignment Print View
Score: 20/20 Points 100 %
2/7/2021 Assignment Print View
7. Award: 2 out of 2.00 points
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title Debits Credits
Cash $ 83,000
Investment in equity securities 148,000
Accounts receivable 79,000
Inventory 219,000
Prepaid insurance (for the next 9 months) 9,000
Land 128,000
Buildings 439,000
Accumulated depreciation—buildings $ 119,000
Equipment 129,000
Accumulated depreciation—equipment 79,000
Patent (net) 29,000
Accounts payable 113,000
Notes payable 187,000
Interest payable 39,000
Bonds Payable 259,000
Common stock 357,000
Retained earnings 110,000
Totals $1,263,000 $1,263,000
Additional information:
1. The investment in equity securities account includes an investment in common stock of another
corporation of $49,000 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 $44,000 that the company has not used and is currently
listed for sale.
3.The cash account includes $34,000 restricted in a fund to pay bonds payable that mature in 2024 and
$42,000 restricted in a three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $49,000 note due in six months.
b. a $69,000 note due in six years.
c. a $69,000 note due in five annual installments of $13,800 each, with the next installment due
February 15, 2022.
5. The $79,000 balance in accounts receivable is net of an allowance for uncollectible accounts of
$6,000.
6. The common stock account represents 119,000 shares of no par value common stock issued and
outstanding. The corporation has 600,000 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.)
ALMWAY CORPORATION
Balance Sheet
At December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$ 49,000
Investment in equity securities
99,000
2/7/2021 Assignment Print View
Allowance for uncollectible accounts
(6,000)
Net accounts receivable 79,000
Inventory
219,000
Prepaid insurance
9,000
Total current assets 455,000
Investments:
Investment in equity securities
49,000
Land held for sale
44,000
Restricted cash
34,000
Total investments 127,000
Property, plant, and equipment:
Land
84,000
Buildings
439,000
Equipment
129,000
652,000
Less: Accumulated depreciation - buildings
(119,000)
Less: Accumulated depreciation - equipment
(79,000)
Net property, plant, and equipment 454,000
Intangible assets:
Patent (net)
29,000
Total assets $ 1,065,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
$
113,000
Interest payable
39,000
Notes payable (current)
49,000
Notes payable (current maturities of long-term debt)
13,800
Total current liabilities 214,800
Long-term liabilities:
Bonds payable
$ 259,000
Notes payable (long-term)
124,200
Total long-term liabilities 383,200
Total liabilities 598,000
Shareholders' equity:
Common stock
357,000
2/7/2021 Assignment Print View
Total shareholders' equity 467,000
Total liabilities and shareholders' equity $ 1,065,000
rev: 09_11_2019_QC_CS-179290, 12_24_2019_QC_CS-194410, 01_14_2020_QC_CS-195439,
10_17_2020_QC_CS-236034
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title Debits Credits
Cash $ 83,000
Investment in equity securities 148,000
Accounts receivable 79,000
Inventory 219,000
Prepaid insurance (for the next 9 months) 9,000
Land 128,000
Buildings 439,000
Accumulated depreciation—buildings $ 119,000
Equipment 129,000
Accumulated depreciation—equipment 79,000
Patent (net) 29,000
Accounts payable 113,000
Notes payable 187,000
Interest payable 39,000
Bonds Payable 259,000
Common stock 357,000
Retained earnings 110,000
Totals $1,263,000 $1,263,000
Additional information:
1. The investment in equity securities account includes an investment in common stock of another
corporation of $49,000 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 $44,000 that the company has not used and is currently
listed for sale.
3.The cash account includes $34,000 restricted in a fund to pay bonds payable that mature in 2024
and $42,000 restricted in a three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $49,000 note due in six months.
b. a $69,000 note due in six years.
c. a $69,000 note due in five annual installments of $13,800 each, with the next installment due
February 15, 2022.
5. The $79,000 balance in accounts receivable is net of an allowance for uncollectible accounts of
$6,000.
6. The common stock account represents 119,000 shares of no par value common stock issued and
outstanding. The corporation has 600,000 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.)
2/7/2021 Assignment Print View
$
$
$
Balance Sheet
At December 31, 2021
Assets
Current assets:
Cash and cash equivalents 49,000
Investment in equity securities 99,000
Accounts receivable 85,000
Allowance for uncollectible accounts (6,000)
Net accounts receivable
Inventory 219,000
Prepaid insurance 9,000
Total current assets
Investments:
Investment in equity securities 49,000
Land held for sale 44,000
Restricted cash 34,000
Total investments
Property, plant, and equipment:
Land 84,000
Buildings 439,000
Equipment 129,000
Less: Accumulated depreciation - buildings (119,000)
Less: Accumulated depreciation - equipment (79,000)
Net property, plant, and equipment
Intangible assets:
Patent (net) 29,000
Total assets
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable 113,000
Interest payable 39,000
Notes payable (current) 49,000
Notes payable (current maturities of long-term debt) 13,800
Total current liabilities
Long-term liabilities:
Notes payable (long-term) 124,200
Bonds payable 259,000
Total long term liabilities
79,000
455,000
127,000
652,000
454,000
$ 1,065,000
214,800
383 200
F
F
F
F
F
F
F
2/7/2021 Assignment Print View
Total long-term liabilities
Total liabilities
Shareholders' equity:
Common stock 357,000
Retained earnings 110,000
Total shareholders' equity
Total liabilities and shareholders' equity
383,200
598,000
467,000
$ 1,065,000
F
F
F
F
rev: 09_11_2019_QC_CS-179290, 12_24_2019_QC_CS-194410, 01_14_2020_QC_CS-195439,
10_17_2020_QC_CS-236034
Explanation:
Accounts receivable, net of allowance for uncollectible accounts of $6,000 = $79,000.
Common stock, no par value; 600,000 shares authorized; 119,000 shares issued and outstanding =
$357,000.
Powered by TCPDF (www.tcpdf.org)
