The investment account includes an investment in common

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Reference no: EM13585503

The following is a December 31, 2013, post-closing trial balance for Almway Corporation.

  Account Title Debits Credits
  Cash
47,000



  Investments
112,000



  Accounts receivable
61,000



  Inventories
201,000



  Prepaid insurance
8,000



  Land
92,000



  Buildings
421,000



  Accumulated depreciation-buildings



101,000
  Equipment
111,000



  Accumulated depreciation-equipment



61,000
  Patents (net of amortization)
11,000



  Accounts payable



77,000
  Notes payable



133,000
  Interest payable



21,000
  Bonds payable



241,000
  Common stock



303,000
  Retained earnings



127,000







     Totals
1,064,000

1,064,000








Additional information:

1.

The investment account includes an investment in common stock of another corporation of $31,000 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 $26,000 that the company has not used and is currently listed for sale.

3.

The cash account includes $16,000 set aside in a fund to pay bonds payable that mature in 2016 and $24,000 set aside in a three-month Treasury bill.

4. The notes payable account consists of the following:

a. a $31,000 note due in six months.

b. a $51,000 note due in six years.

c.

a $51,000 note due in 5 annual installments of $10,200 each, with the next installment due February 15, 2014.

5. The $61,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000.
6.

The common stock account represents 101,000 shares of no par value common stock issued and outstanding. The corporation has 400,000 shares authorized.

Required:

Prepare a classified balance sheet for the Almway Corporation at December 31, 2013.

Reference no: EM13585503

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