Reference no: EM131770939

The following is a December 31, 2013, post-closing trial balance for Almway Corporation. (updated Balance Sheet)

Account Title Debits Credits
Cash 55,000
Investments 120,000
Accounts receivable 65,000
Inventories 205,000
Prepaid insurance 7,000
Land 100,000
Buildings 425,000
Accumulated depreciation-buildings 105,000
Equipment 115,000
Accumulated depreciation-equipment 65,000
Patents (net of amortization) 15,000
Accounts payable 85,000
Notes payable 145,000
Interest payable 25,000
Bonds Payable 245,000
Common stock 315,000
Retained earnings 1222,000

Totals 1,107,000 1,107,000

Additional information:

1. The investment account includes an investment in common stock of another corporation of $35,000 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 $30,000 that the company has not used and is currently listed for sale.

3. The cash account includes $20,000 set aside in a fund to pay bonds payable that mature in 2016 and $28,000 set aside in a three-month Treasury bill.

4. The notes payable account consists of the following:

a. a $35,000 note due in six months.
b. a $55,000 note due in six years.
c. a $55,000 note due in five annual installments of $11,000 each, with the next installment due February 15, 2014.

5. The $65,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.

6. The common stock account represents 105,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.