Reference no: EM13507092

The adjusted trial balance of Eastwood Company and other related information for the year 2012 are presented on the next page.

	EASTWOOD COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2012
	Debits	Credits
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 Expenses		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
	$1,422,900	$1,422,900

Additional information:

1. The LIFO method of inventory value is used.

2. The cost and fair value of the long-term investments that consist of stocks and bonds is the same.

3. 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.

4. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis.

5. Of the discount on bonds payable, $2,000 will be amortized in 2013.

6. The notes payable represent bank loans that are secured by long-term investments carried at $120,000.

These bank loans are due in 2013.

7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2023.

8. 600,000 shares of common stock of a par value of $1 were authorized, of which 500,000 shares were issued and outstanding.

 

Instructions

Prepare a balance sheet as of December 31, 2012, so that all important information is fully disclosed.