Chap03 - Student Name Class Problem 03-03 ALMWAY...

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Student Name: Class: Problem 03-03 ALMWAY CORPORATION Balance Sheet At December 31, 2011 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for uncollectible accounts of $8,000 Inventories Prepaid insurance Total current assets Investments: Marketable securities Land held for sale Bond sinking fund Total investments Property, plant, and equipment: Land Buildings Equipment Less: Accumulated depreciation Net property, plant, and equipment Intangibles: Patents Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Note payable Current maturities of long-term debt Total current liabilities Long-term liabilities: Notes payable Bonds payable Total long-term liabilities Shareholders' equity: Common stock, no par value; 500,000 shares authorized; 100,000 shares issued and outstanding Retained earnings Total shareholders' equity Total liabilities and shareholders' equity
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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