Post-closing trial balance


Problem:

The December 31, 2013 post-closing trial balance for Tricam Engineering, an exploration company, is presented below.

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 provided is below:

1. Accounts receivable includes a $50,000 note receivable received from a customer that is due in 2015. 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 Tricam Engineering at December 31, 2013 using the post-closing trial balance and the additional information provided.

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Accounting Basics: Post-closing trial balance
Reference No:- TGS01881429

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