Balance sheet preparation

Assignment Help Accounting Basics

Reference no: EM13985693

Problem: Balance Sheet preparation:

The following is a December 31, 2016, post-closing trial balance for Almway Corporation.

Account Title	Debits	Credits
Cash	81,000
Investments	146,000
Account receivable	78,000
Inventories	218,000
Prepaid Insurance	7,000
Land	126,000
Buildings	438,000
Accumulated depreciation-buildings		118,000
Equipment	128,000
Accumulated depreciation-equipment		78,000
Patents (net of amortization)	28,000
Accounts payable		111,000
Notes payable		184,000
Interest payable		38,000
Bonds Payable		258,000
Common stock		354,000
Retained earnings		109,000
Totals	1,250,000	1,250,000

Additional information:

1. The investment account includes an investment in common stock of another corporation of $48,000 which management intends to hold for at least three years. The balance of these investments is intended to sold in the coming year.

2. The land account includes land which cost $43,000 that the company has not used and is currently listed for sale.

3. The cash account includes $33,000 restricted in a fund to pay bonds payable that mature in 2019 and $41,000 set aside in a three-month Treasury bill.

4. The notes payable account consists of the following:

a. A $48,000 note due in six months.

b. A $68,000 note due in six years.

c. A $68,000 note due in five annual installments of $13,600 each, with the next installment due February 15, 2017.

5. The $78,000 balance in accounts receivable is net of an allowance for uncollectable accounts of $7,000.

6. The common stock account represents 118,000 shares of no par value common stock issued and outstanding. The corporation has 6000,000 shares authorized.

Required:

Prepare a classified balance sheet for the Almway Corporation at December 31, 2016.

Reference no: EM13985693

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