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The following is a December 31, 2018, post-closing trial balance for Almway Corp

ID: 2559370 • Letter: T

Question

The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Cash Investments Accounts receivable Inventories Prepaid insurance (for the next 9 months) Debits 45,000 110,000 60,000 200,000 Credits 9,000 90,000 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents (net of amortization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals 420,000 110,000 10,000 100,000 60,000 75,000 130,000 20,000 240,000 300,000 129,000 1,054,000 1,054,000

Explanation / Answer

Almway Corporation

Balance Sheet as at 31 December 2018

Fiscal Ended

31-Dec-18

ASSETS

Current Assets

Cash

$30,000

Investments

$80,000

Accounts Receivables

$60,000

Inventories

$200,000

Prepaid Insurance

$9,000

Assets held for sale

$25,000

Total Current Assets

$404,000

Property, Plant and Equipment, at Cost

$595,000

Less: Accumulated depreciation

($160,000)

Net Property and Equipment

$435,000

Intangible Assets

Patents (net of amortization)

$10,000

Other Non-Current Assets

Cash

$15,000

Investments

$30,000

Total Other Non-Current Assets

$45,000

Total Assets

$894,000

LIABILITY AND STOCKHOLDERS EQUITY:

Current Liabilities

Accounts Payable

$75,000

Notes Payable

$40,000

Interest Payable

$20,000

Total current liabilities

$135,000

Non-Current Liabilities

Notes Payable

$90,000

Bonds Payable

$240,000

Total Non-Current Liabilities

$330,000

Total Liabilities

$465,000

STOCKHOLDER'S EQUITY

Common Stock

$300,000

Retained Earnings

$129,000

Total Stockholder's Equity

$429,000

Total Liability and Stockholders Equity

$894,000

Fiscal Ended

31-Dec-18

ASSETS

Current Assets

Cash

$30,000

Investments

$80,000

Accounts Receivables

$60,000

Inventories

$200,000

Prepaid Insurance

$9,000

Assets held for sale

$25,000

Total Current Assets

$404,000

Property, Plant and Equipment, at Cost

$595,000

Less: Accumulated depreciation

($160,000)

Net Property and Equipment

$435,000

Intangible Assets

Patents (net of amortization)

$10,000

Other Non-Current Assets

Cash

$15,000

Investments

$30,000

Total Other Non-Current Assets

$45,000

Total Assets

$894,000

LIABILITY AND STOCKHOLDERS EQUITY:

Current Liabilities

Accounts Payable

$75,000

Notes Payable

$40,000

Interest Payable

$20,000

Total current liabilities

$135,000

Non-Current Liabilities

Notes Payable

$90,000

Bonds Payable

$240,000

Total Non-Current Liabilities

$330,000

Total Liabilities

$465,000

STOCKHOLDER'S EQUITY

Common Stock

$300,000

Retained Earnings

$129,000

Total Stockholder's Equity

$429,000

Total Liability and Stockholders Equity

$894,000