The adjusted trial balance of Eastwood Company and other related information for the year 2020 are presented as follows.

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 2021.

6. The notes payable represent bank loans that are secured by long-term investments carried at $120,000. These bank loans are due in 2021.

7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2031.

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, 2020, so that all important information is fully disclosed.

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Eastwood Company Adjusted Trial Balance December 31, 2020 Debit Credit $ 41,000 Cash Accounts Receivable 163,500 Allowance for Doubtful Accounts 8,700 Prepaid Insurance Inventory Equity Investments (long-term) Land 5,900 208,500 339,000 85,000 Construction in Process (building) 124,000 Patents 36,000 Equipment Accumulated Depreciation-Equipment Discount on Bonds Payable Accounts Payable Accrued Liabilities 400,000 240,000 20,000 148,000 49,200 Notes Payable 94,000 Debit Credit Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings 200,000 500,000 138,000 $1,422,900 $1,422,900