Problem 3-3 Balance sheet preparation [LO3-2, 3-3] The following is a December 3
ID: 2611999 • Letter: P
Question
Problem 3-3 Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Debitscredits Cash Investments Accounts receivable Inventories Prepaid insurance (for the next 9 months) Land 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 47,000 112,000 61,000 201,000 8,000 92,000 421,000 101,000 111,000 es 61,000 11,000 77,000 133,000 21,000 241,000 303,000 127,000 1,064,000 1,064,000Explanation / Answer
Answer:
Almway Corporation
Balance Sheet
31-Dec-18
Assets
Current assets
Cash
31,000
Account receivable net of
Allowance for uncollectible accounts 9000
61,000
Short Term Investments
81,000
Inventories
201,000
Prepaid Expenses
8,000
Total current assets
382,000
Investments
Marketable securities
31,000
Land held for Resale
26,000
Bond Sinking Fund
16,000
Total Investment
73,000
Property, plant and equipment
Land
66,000
Buildings
421000
Equipment
111,000
Total
598,000
Less: Accumulated depreciation
-162,000
Net property plant and equipment
436,000
Intangibles Asstes
Patents
11,000
Total assets
902,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
77,000
Interest payable
21,000
Note Payable
31,000
Current maturities of long term debt
10,200
Total current liabilities
139,200
Long term liabilities
Notes payable
91,800
Bonds payable
241,000
Total long term liabilities
332,800
Stockholders' equity
Common Stock no par value 400,000 shares authorized , 101,000 shares issued and outstanding
303,000
Retained earnings
127000
Total liabilities and stockholders' equity
902,000
Almway Corporation
Balance Sheet
31-Dec-18
Assets
Current assets
Cash
31,000
Account receivable net of
Allowance for uncollectible accounts 9000
61,000
Short Term Investments
81,000
Inventories
201,000
Prepaid Expenses
8,000
Total current assets
382,000
Investments
Marketable securities
31,000
Land held for Resale
26,000
Bond Sinking Fund
16,000
Total Investment
73,000
Property, plant and equipment
Land
66,000
Buildings
421000
Equipment
111,000
Total
598,000
Less: Accumulated depreciation
-162,000
Net property plant and equipment
436,000
Intangibles Asstes
Patents
11,000
Total assets
902,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
77,000
Interest payable
21,000
Note Payable
31,000
Current maturities of long term debt
10,200
Total current liabilities
139,200
Long term liabilities
Notes payable
91,800
Bonds payable
241,000
Total long term liabilities
332,800
Stockholders' equity
Common Stock no par value 400,000 shares authorized , 101,000 shares issued and outstanding
303,000
Retained earnings
127000
Total liabilities and stockholders' equity
902,000
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