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Homework answers / question archive / The following is a December 31, 2021, post-closing trial balance for Almway Corporation

The following is a December 31, 2021, post-closing trial balance for Almway Corporation

Accounting

The following is a December 31, 2021, post-closing trial balance for Almway Corporation.

Account Title Debits   Credits
Cash   $ 65,000        
Investment in equity securities     130,000        
Accounts receivable     70,000        
Inventory     210,000        
Prepaid insurance (for the next 9 months)     8,000        
Land     110,000        
Buildings     430,000        
Accumulated depreciation—buildings         $ 110,000  
Equipment     120,000        
Accumulated depreciation—equipment           70,000  
Patent (net)     20,000        
Accounts payable           95,000  
Notes payable           160,000  
Interest payable           30,000  
Bonds Payable           250,000  
Common stock           330,000  
Retained earnings           118,000  
Totals   $ 1,163,000   $ 1,163,000  
 


Additional information:

  1. The investment in equity securities account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale.
  3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2024 and $33,000 restricted in a three-month Treasury bill.
  4. The notes payable account consists of the following:
  1. a $40,000 note due in six months.
  2. a $60,000 note due in six years.
  3. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2022.
  1. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000.
  2. The common stock account represents 110,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.


Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2021. and explain

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