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question account title debits credits cash 83 000 investments 148 000 accounts recei 4281667

Question

Account Title Debits Credits

Cash 83,000

Investments 148,000

Accounts receivable 79,000

Inventories 219,000

Prepaid insurance (for the next 9 months) 9,000

Land 128,000

Buildings 439,000

Accumulated depreciation—buildings 119,000

Equipment 129,000

Accumulated depreciation—equipment 79,000

Patents (net of amortization) 29,000

Accounts payable 113,000

Notes payable 187,000

Interest payable 39,000

Bonds Payable 259,000

Common stock 357,000

Retained earnings 110,000

Totals 1,263,000 1,263,000

1.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

 

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