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The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits $ 55,000 Cash 120,000 65,000 205,000 7,000 100,000 425,000 Investment in equity. securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation- buildings Equipment Accumulated depreciation- equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals 115,000 15,000 Credits $ 105,000 65,000 85,000 145,000 25,000 245,000 315,000 122,000 $1,107,000 $1,107,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $35,000 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 $30,000 that the company has not used and is currently listed for sale. 3. The cash account includes $20,000 restricted in a fund to pay bonds payable that mature in 2024 and $28,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $35,000 note due in six months. b. a $55,000 note due in six years. c. a $55,000 note due in five annual installments of $11,000 each, with the next installment due February 15, 2022. 5. The $65,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 105,000 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.)

The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits $ 55,000 Cash 120,000 65,000 205,000 7,000 100,000 425,000 Investment in equity. securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation- buildings Equipment Accumulated depreciation- equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals 115,000 15,000 Credits $ 105,000 65,000 85,000 145,000 25,000 245,000 315,000 122,000 $1,107,000 $1,107,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $35,000 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 $30,000 that the company has not used and is currently listed for sale. 3. The cash account includes $20,000 restricted in a fund to pay bonds payable that mature in 2024 and $28,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $35,000 note due in six months. b. a $55,000 note due in six years. c. a $55,000 note due in five annual installments of $11,000 each, with the next installment due February 15, 2022. 5. The $65,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 105,000 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.)

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation- buildings Equipment Accumulated depreciation- equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common tock Retained earnings Totals $ Debits 55,000 120,000 65,000 205,000 7,000 100,000 425,000 115,000 15,000 Credits $ 105,000 65,000 85,000 145,000 25,000 245,000 315,000 122,000 $1,107,000 $1,107,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $35,000 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 $30,000 that the company has not used and is currently listed for sale. 3. The cash account includes $20,000 restricted in a fund to pay bonds payable that mature in 2024 and $28,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $35,000 note due in six months. b. a $55,000 note due in six years. c. a $55,000 note due in five annual installments of $11,000 each, with the next installment due February 15, 2022. 5. The $65,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 105,000 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.)
Transcribed Image Text:The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation- buildings Equipment Accumulated depreciation- equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common tock Retained earnings Totals $ Debits 55,000 120,000 65,000 205,000 7,000 100,000 425,000 115,000 15,000 Credits $ 105,000 65,000 85,000 145,000 25,000 245,000 315,000 122,000 $1,107,000 $1,107,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $35,000 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 $30,000 that the company has not used and is currently listed for sale. 3. The cash account includes $20,000 restricted in a fund to pay bonds payable that mature in 2024 and $28,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $35,000 note due in six months. b. a $55,000 note due in six years. c. a $55,000 note due in five annual installments of $11,000 each, with the next installment due February 15, 2022. 5. The $65,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 105,000 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.)
Current assets: Cash and cash equivalents Total current assets Short-term investments Allowance for uncollectible accounts Inventory Net accounts receivable Investments: Total investments Property, plant, and equipment: ALMWAY CORPORATION Balance Sheet At December 31, 2021 Assets Show Transcribed Text Total assets Current liabilities: Net property, plant, and equipment Intangible assets: Answer is not complete. Total current liabilities Long-term liabilities: equity Total long-term liabilities Total liabilities Shareholders' equity: ✓ ✓ ✓ X Total shareholders' equity Total liabilities and shareholders' 65,000 X 212,000 X Liabilities and Shareholders' Equity 0 IS 35,000 85,000✔ 277,000 35,000 X 30,000 X 20,000 X 482.000 0 0 $ 482,000 S 0 0 0 0 0
Transcribed Image Text:Current assets: Cash and cash equivalents Total current assets Short-term investments Allowance for uncollectible accounts Inventory Net accounts receivable Investments: Total investments Property, plant, and equipment: ALMWAY CORPORATION Balance Sheet At December 31, 2021 Assets Show Transcribed Text Total assets Current liabilities: Net property, plant, and equipment Intangible assets: Answer is not complete. Total current liabilities Long-term liabilities: equity Total long-term liabilities Total liabilities Shareholders' equity: ✓ ✓ ✓ X Total shareholders' equity Total liabilities and shareholders' 65,000 X 212,000 X Liabilities and Shareholders' Equity 0 IS 35,000 85,000✔ 277,000 35,000 X 30,000 X 20,000 X 482.000 0 0 $ 482,000 S 0 0 0 0 0
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