100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 3 out of 8 pages.
The preview shows page 1 - 3 out of 8 pages.
Student Name:Class:Problem 03-03ALMWAY CORPORATIONBalance Sheetat December 31, 2006AssetsCurrent assets:Cash and cash equivalentsShort-term investmentsAccounts receivable, net of allowance foruncollectible accounts of $8,000InventoriesPrepaid insuranceTotal current assetsInvestments:Marketable securitiesLand held for saleBond sinking fundTotal investmentsProperty, plant, and equipment:LandBuildingsEquipmentLess: Accumulated depreciationNet property, plant, and equipmentIntangibles:PatentsTotal assetsLiabilities and Shareholders' EquityCurrent liabilities:Accounts payableInterest payableNote payableCurrent maturities of long-term debtTotal current liabilitiesLong-term liabilities:Notes payableBonds payableTotal long-term liabilitiesShareholders' equity:Common stock, no par value; 500,000 sharesauthorized; 100,000 shares issued and outstandingRetained earningsTotal shareholders' equityTotal liabilities and shareholders' equity
Given Data P03-03:ALMWAY CORPORATIONPost-Closing Trial BalanceDecember 31, 2006Account TitleDebitsCreditsCash45,000 Investments110,000 Accounts receivable60,000 Inventories200,000 Prepaid insurance9,000 Land90,000 Buildings420,000 Accumulated depreciation - buildings100,000 Equipment110,000 Accumulated depreciation - equipment60,000 Patents (net of amortization)10,000 Accounts payable75,000 Notes payable130,000 Interest payable20,000 Bonds payable240,000 Common stock300,000 Retained earnings129,000 Totals1,054,000 1,054,000 Additional Information:Common stock investment$30,000 Intention to hold (years)3 Land cost$25,000 Cash set aside to pay bonds payable15,000 Cash set aside in 3-month treasury bill23,000