Question

The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title Debits Credits
Cash $ 63,000
Investment in equity securities 128,000
Accounts receivable 69,000
Inventory 209,000
Prepaid insurance (for
the next 9 months) 7,000
Land 108,000
Buildings 429,000
Accumulated depreciation—buildings $109,000
Equipment 119,000
Accumulated depreciation—equipment 69,000
Patent (net) 19,000
Accounts payable 94,000
Notes payable 157,000
Interest payable 29,000
Bonds Payable 249,000
Common stock 327,000
Retained earnings 117,000
Totals $1,151,000 $1,151,000
Additional information:
The investment in equity securities account includes an investment in common stock of another corporation of $39,000 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 $34,000 that the company has not used and is currently listed for sale.
The cash account includes $24,000 restricted in a fund to pay bonds payable that mature in 2024 and $32,000 restricted in a three-month Treasury bill.
The notes payable account consists of the following:
a $39,000 note due in six months.
a $59,000 note due in six years.
a $59,000 note due in five annual installments of $11,800 each, with the next installment due February 15, 2022.
The $69,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000.
The common stock account represents 109,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 shares authorized.
Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2021.

Answer 1

The Classified Balance Sheet as at December 31, 2021 Total assets is $973,000 and Total liabilities & shareholders equity $973,000.

Classified Balance Sheet

Classified Balance Sheet as at December 31, 2021 for Almway Corporation

Assets

Current assets:

Cash and cash equivalent                                   $39,000

($63,000-$24,000)

Short term investment                                         $89,000

($128,000-$39,000)

Accounts receivable, net of allowance              $69,000

Inventory                                                               $209,000

Prepaid insurance                                                 $7,000

Total current assets                                              $413,000

Long-term assets:

Investment

Marketable securities $39,000

Land held for sales    $34,000

Restricted cash          $24,000                                 $97,000

Property, plant, and equipment

Land                          $74,000

($108,000-$34,000)

Buildings                 $429,000

Equipment               $119,000

Accumulated depreciation  ($178,000)

($109,000+$69,000)

Net property, Plant, and Equipment                          $444,000  

Intangible assets

Patents                                                                          $19,000

Total assets                                                                  $973,000

Liabilities and shareholder equity Equity

Current Liabilities:

Accounts payable                                                           $94,000

Interest payable                                                              $29,000

Note  Payable                                                                  $39,000

Current maturities of long-term debt                             $11,800

Total current liabilities                                                    $173,800

Long-term liabilities

Note Payable                     $106,200        
($157,000-$39,000-$11,800)

Bonds Payable                   $249,000

Total long-term liabilities                                                  $355,200

Shareholders equity

Common stock                     $327,000

Retained earnings                $117,000

Total shareholders equity                                                     $444,000

Total liabilities & shareholders equity                                 $973,000

Therefore the Classified Balance Sheet as at December 31, 2021 Total assets is $973,000 and Total liabilities & shareholders equity $973,000.

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