Chap003 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 03-03 ALMWAY CORPORATION Balance Sheet At December 31, 2011 Assets Current assets: Cash and cash equivalents $ 30,000 Short-term investments 80,000 Accounts receivable, net of allowance for uncollectible accounts of $8,000 60,000 Inventories 200,000 Prepaid insurance 9,000 Total current assets 379,000 Investments: Marketable securities $ 30,000 Land held for sale 25,000 Bond sinking fund 15,000 Total investments 70,000 Property, plant, and equipment: Land 65,000 Buildings 420,000 Equipment 110,000 595,000 Less: Accumulated depreciation (160,000) Net property, plant, and equipment 435,000 Intangibles: Patents 10,000 Total assets $ 894,000 Correct! Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 75,000 Interest payable 20,000 Note payable 30,000 Current maturities of long-term debt 10,000 Total current liabilities 135,000 Long-term liabilities: Notes payable $ 90,000 Bonds payable 240,000 Total long-term liabilities 330,000 Shareholders' equity: Common stock, no par value; 500,000 shares authorized; 100,000 shares issued and outstanding 300,000 Retained earnings 129,000 Total shareholders' equity 429,000 Total liabilities and shareholders' equity $ 894,000 Correct!
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Given Data P03-03: ALMWAY CORPORATION Post-Closing Trial Balance December 31, 2011 Account Title Debits Credits Cash 45,000 Investments 110,000 Accounts receivable 60,000 Inventories 200,000 Prepaid insurance 9,000 Land 90,000 Buildings 420,000 Accumulated depreciation - buildings 100,000 Equipment 110,000 Accumulated depreciation - equipment 60,000 Patents (net of amortization) 10,000 Accounts payable 75,000 Notes payable 130,000 Interest payable 20,000 Bonds payable 240,000 Common stock 300,000 Retained earnings 129,000 Totals 1,054,000 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 payable $ 15,000 Cash set aside in 3-month treasury bill $ 23,000 Note due in six months $ 30,000 Note due in six years $ 50,000
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