Prepare a balance sheet in good form as of december 31 2015

Reference no: EM13394984

The following is the adjusted trial balance of the XHO Company as of December 31, 2015:

XHO Company
Adjusted Trial Balance
31-Dec-15
Debits Credits
Cash $49,100
Accounts Receivables 195,700
Allowance for Doubtful Accounts $10,400
Prepaid Insurance 7,100
Inventory 369,300
Long-term Investments 405,800
Land 101,700
Construction Work in Process 148,400
Patents 43,200
Equipment 478,800
Accumulated Depreciation - Equipment 167,600
Unamortized Discount on Bonds Payable 24,000
Accounts Payable 177,200
Accrued Expenses 58,900
Notes Payable 112,500
Bonds Payable 478,800
Common Stock 598,500
Premium on Common Stock 53,900
Retained Earnings 165,300
$1,823,100 $1,823,100

Additional information:

1. The company purchased the patents for $48,000 and amortizes the cost using the straight-line method of amortization.

2. In 2016, $2,400 of the unamortized discount on bonds payable will be amortized.

3. The long-term investments consist of both stocks and bonds. The costs of the investments equal the fair market value of the investments.

4. The company has an outstanding bank loan recorded as a notes payable. The loan is due in 2016 and is secured by long-term investments in the amount of $144,000.

5. The bonds payable pay 8% interest each December 31. They are due on January 1, 2026.

6. The Construction Work in Process represents a new factory building under construction.

7. The Land represents the land on which the new factory is being constructed.

8. The company uses the FIFO method of inventory valuation.

9. The company has authorized 718,000 shares of common stock with a $1 par value. During 2015, there were 598,500 shares issued and outstanding.

10. The company ends its accounting year on December 31.

Instructions:

Prepare a balance sheet in good form as of December 31, 2015 which fully discloses all important information.

Reference no: EM13394984

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