Account Balances and Supplemental Information for the Alain Corporation as of December

Essay

Account balances and supplemental information for the Alain Corporation as of December 31,2015,are given below:

(a)$300,000 of 12% bonds were sold on November 1,2015,at par.
(b)40,000 shares of $30 par value common stock were sold for $1,560,000.
(c)All the equipment was purchased on January 2,2014.The depreciation rate is 10 percent per year.
(d)5 percent of accounts receivable are expected to be uncollectible.
(e)A two-year insurance policy was purchased on May 1,2015,for $7,200.
(f)Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31,2015.
(g)$120,000 was borrowed from the bank on a 5-year,10% note payable dated July 1,2015.The loan is to be repaid in 10 semiannual payments of $12,000 plus interest,with the first payment due January 1,2016.
Prepare a properly classified balance sheet in report form for Alain Corporation as of December 31,2015.