Prepare a balance sheet as of December 31, 2014, so that all important information is fully…
- March 08, 2021/ Questions
Prepare a balance sheet as of December 31, 2014, so that all important information is fully disclosed. EASTWOOD COMPANY ADJUSTED TRIAL BALANCE 31-Dec-14 Debit Credit Cash $41,000 Accounts Receivable $163,500 Allowance for Doubtful Accounts $8,700 Prepaid Insurance $5,900 Inventory $208,500 Equity Investments (long-term) $339,000 Land $85,000 Construction in Process (building) $124,000 Patents $36,000 Equipment $400,000 Accumulated Depreciation—Equipment $240,000 Discount on Bonds Payable $20,000 Accounts Payable $148,000 Accrued Liabilities $49,200 Notes Payable $94,000 Bonds Payable $200,000 Common Stock $500,000 Paid-in Capital in Excess of Par—Common Stock $45,000 Retained Earnings $138,000 Grand Total $1,422,900 $1,422,900 Additional information: The LIFO method of inventory value is used. The cost and fair value of the long-term investments that consist of stocks and bonds is the same. The amount of the Construction in Progress account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $85,000, as shown in the trial balance. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis. Of the discount on bonds payable, $2,000 will be amortized in 2015. The notes payable represent bank loans that are secured by long-term investments carried at $120,000. These bank loans are due in 2015. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2025. 600,000 shares of common stock of a par value of $1 were authorized, of which 500,000 shares were issued and outstanding.