Demonstration Problem 3-5
The following is a December 31, 2016, post-closing trial balance for the Alexandria
Exploration Corporation.
Account Title
Debits
Credits
Cash ……………………………………………………
52,000
Accounts receivable ……………………………..
223,000
Allowance for uncollectible accounts ……..
15,000
Inventories …………………………………………..
200,000
Supplies ………………………………………………
3,000
Investments …………………………………………
140,000
Land …………………………………………………..
100,000
Buildings …………………………………………….
500,000
Accumulated depreciation – buildings …….
150,000
Machinery …………………………………………..
250,000
Accumulated depreciation – machinery …..
80,000
Goodwill …………………………………………….
36,000
Accounts payable …………………………………
125,000
Bonds payable ……………………………………..
500,000
Interest payable ……………………………………
40,000
Common stock …………………………………….
500,000
Retained earnings …………………………………
______
94,000
Totals
1,504,000
1,504,000
Additional information:
1. Accounts receivable includes a $50,000 note receivable received from a customer that is due
in 2018. Also included is interest on the note of $3,000 that is due in six months.
2. The land account includes land that cost $20,000 that the company has not used and is
currently listed for sale.
3. The investment account includes a $10,000, 3-month certificate of deposit due in 40 days.
The remaining investments will be sold within the next year.
4. The bonds payable account consists of the following:
a. a $200,000 issue due in six months.
b. a $300,000 issue due in six years.
5. The common stock account represents 500,000 shares of no par value common stock issued
and outstanding. The corporation has 1,000,000 shares authorized.
Required:
Prepare a classified balance sheet for Alexandria at December 31, 2016.
