Show transcribed image text Problems 249 EASTWOOD COMPANY ADIUSTED TRIAL BALANCE DECEMBER31, 2017 Debit Credit Cash Accounts Receivable 5 41,000 163,500 Allowance for Doubtful Accounts Prepaid Insurance 8,700 Equity Investments (long-term) Land Construction in Process (building) Patents 5,900 208,500 339,000 85,000 124,000 36,000 400,000 Accumulated Depreciation-Equipment Discount on Bonds Payable Accounts Payable Accrued Liabilities Notes Payable Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings 240,000 148,000 9,200 94,000 200,000 45,000 138,000 $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 (with ownership less than 20% of total shares) are 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 2018. 6. The notes payable represent bank loans that are secured by long-term investments carried at $120,000. These bank loans are due in 2018. 7, The bonds payable bear interest at 8 % payable every December 31, and are due January 1, 2028. 8. 600,000 shares of common stock of a par value of SI were authorized, of which 500,000 shares were issued and outstanding Instructions Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed. P5-4 (Lo3) GROUPWORK (Preparation of a Corrected Balance Sheet) The balance sheet of Kishwaukee Corporation as of December 31, 2017, is as follows. KISHWAUKEE CORPORATION BALANCE SHEET