Question

Account Title Debits CreditsCash 83,000Investments 148,000Accounts receivable 79,000Inventories 219,000Prepaid insurance (for the next 9 months) 9,000Land 128,000Buildings 439,000Accumulated depreciation—buildings 119,000Equipment 129,000Accumulated depreciation—equipment 79,000Patents (net of amortization) 29,000Accounts payable 113,000Notes payable 187,000Interest payable 39,000Bonds Payable 259,000Common stock 357,000Retained earnings 110,000Totals 1,263,000 1,263,0001.The investment account includes an investment in common stock of another corporation of $49,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.2.The land account includes land which cost $44,000 that the company has not used and is currently listed for sale.3.The cash account includes $34,000 restricted in a fund to pay bonds payable that mature in 2021 and $42,000 set aside in a three-month Treasury bill.The notes payable account consists of the following:a.a $49,000 note due in six months.b.a $69,000 note due in six years.c.a $69,000 note due in five annual installments of $13,800 each, with the next installment due February 15, 2019.5.The $79,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000.6.The common stock account represents 119,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.Required:Prepare a classified balance sheet for the Almway Corporation at December 31, 2018

Answer 1

Answer:

Assets:

Cash                                 49,000

Investments                     99,000

Accounts receivable       79,000

Inventories                     219,000

Prepaid insurance             9,000

Land                                 44,000  

Total current                 499,000

Long term-investment 49,000

Restricted cash            34,000

Land                             84,000

Buildings                    439,000

Acc dep—buildings   (119,000)

Equipment                  129,000

Acc dep—equipment (79,000)

Patents (net)               29,000  

Total non current      566‬,000

Total Assets                       1,065,000

Liabilities

Accounts payable      113,000

Notes payable            131,800

Interest payable          39,000

Current                                   283,800

Bonds Payable 259,000

Note payable     55,200

Non current:      314,200

Total Liabilities                      598,000  

Equity

Common stock     357,000

Retained earnings 110,000

Total equity                            467,000

Liabilities + Equity              1,065,000

Explanation:

When the asset are expected to convert into cash within 12 month are considered current else non-current.

When a liaiblity will mature within a year is considered current. Else, non-current or long-term