Question:
The following is a December 31, 2013, post-closing trial balance for Almway Corporation.
Additional Information:
1. The investment account includes an investment in common stock of another corporation of $30,000
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 $25,000 that the company has not used and is currently
listed for sale.
3. The cash account includes $15,000 set aside in a fund to pay bonds payable that mature in 2016 and
$23,000 set aside in a three-month Treasury bill.
4. The notes payable account consists of the following: a. a $30,000 note due in six months. b. a $50,000
note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next
installment due February 15,
2014.
5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
The following is a December 31, 2013, post-closing trial balance for Almway Corporation.
Additional Information:
1. The investment account includes an investment in common stock of another corporation of $30,000
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 $25,000 that the company has not used and is currently
listed for sale.
3. The cash account includes $15,000 set aside in a fund to pay bonds payable that mature in 2016 and
$23,000 set aside in a three-month Treasury bill.
4. The notes payable account consists of the following: a. a $30,000 note due in six months. b. a $50,000
note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next
installment due February 15,
2014.
5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
