Answer:
Almway Corporation
Classified Balance Sheet as at December 31, 2021:
Assets
Current assets:
Cash $ 7,000
Restricted Cash 39,000
Investment in
equity securities 46,000
Accounts receivable 82,000
Allowance for
uncollectible accounts $6,000 76,000
Inventory 216,000
Prepaid insurance 6,000
(for the next 9 months)
Total current assets $390,000
Long-term assets:
Land for sale 41,000
Land for use 81,000
Buildings 436,000
Acc. depreciation 116,000 320,000
Equipment 126,000
Acc. depreciation 76,000 50,000
Patent (net) 26,000
Investment in
equity securities 96,000
Restricted Cash 31,000
Long-term assets $645,000
Total assets $1,035,000
Liabilities and Equity
Current Liabilities:|
Accounts payable 107,000
Short-term notes payable 59,200
Interest payable 36,000
Total current liabilities $202,200
Long-term notes payable 118,800
Bonds Payable 256,000
Total long-term liabilities $374,800
Total liabilities $577,000
Common stock 348,000
Retained earnings 110,000
Total equity $458,000
Total liabilities & equity $1,035,000
Explanation:
a) Data and Calculations:
Almway Corporation
Post-closing Trial Balance as at December 31, 2021:
Account Titles Debit Credit
Cash $ 77,000
Investment in
equity securities 142,000
Accounts receivable 76,000
Inventory 216,000
Prepaid insurance 6,000
(for the next 9 months)
Land 122,000
Buildings 436,000
Accumulated depreciation-buildings $ 116,000
Equipment 126,000
Accumulated depreciation equipment 76,000
Patent (net) 26,000
Accounts payable 107,000
Notes payable 178,000
Interest payable 36,000
Bonds Payable 256,000
Common stock 348,000
Retained earnings 110,000
Totals $1,227,000 $1,227,000
Adjustments:
1. Investment in equity securities $142,000
Long-term investments 46,000
Short-term investments = 96,000
2. Land for sale = $41,000
Land for use = $81,000
Total land = $122,000
3. Restricted Cash (2024) = $31,000
Restricted Cash (short-term) = $39,000
Other cash = $7,000
4. Notes payable:
Short-term notes = $59,200 ($46,000 + $13,200)
Long-term notes = $118,800
5. Accounts receivable = $82,000
Allowance for Uncollectible accounts = $6,000
6. Authorized shares = 300,000
Issued and outstanding shares = 116,000
Almway Corporation
Adjusted Trial Balance as at December 31, 2021:
Account Titles Debit Credit
Cash $ 7,000
Restricted Cash 39,000
Investment in
equity securities 46,000
Accounts receivable 82,000
Allowance for uncollectible accounts $6,000
Inventory 216,000
Prepaid insurance 6,000
(for the next 9 months)
Land for sale 41,000
Land for use 81,000
Buildings 436,000
Accumulated depreciation-buildings 116,000
Equipment 126,000
Accumulated depreciation equipment 76,000
Patent (net) 26,000
Investment in
equity securities 96,000
Restricted Cash 31,000
Accounts payable 107,000
Short-term notes payable 59,200
Interest payable 36,000
Long-term notes payable 118,800
Bonds Payable 256,000
Common stock 348,000
Retained earnings 110,000
Totals $1,233,000 $1,233,000