I'm struggling with Part 1. Can't figure out why it isn't balancing

Assessment 2 Information, Parts 1-4 Part 1: Classified Balance Sheet The adjusted trial balance of Jordan Contracting and other related information for the year 2015 is presented below. Adjusted Trial Balance December 31, 2015 Debits Cash $20,500 Accounts Receivable 81,750 Allowance for Doubtful Accounts $4,350 Prepaid Insurance 2,950 Inventory 154,250 Long-term Investments 169,500 Land 42,500 Construction Work in Progress 62,000 Patents 18,000 Equipment 200,000 Accumulated Depreciation of Equipment Unamortized Discount on Bonds Payable Credits 70,000 10,000 Accounts Payable 74,000 Accrued Expenses 24,600 Notes Payable 47,000 Bonds Payable 200,000 Capital Stock 250,000 Premium on Capital Stock 22,500 Retained Earnings 69,000 $761,450 $761,450 1 Additional Information 1. The LIFO method of inventory valuation is used. 2. The cost and fair value of the long-term investments consisting of stock and bonds is the same. 3. The amount of Construction Work in Progress account represents the costs expended to date on a building in the process of being constructed. The land on which the building sits cost $42,500. 4. The patents were purchased at a cost of $10,000 and are being amortized on a straight-line basis. 5. $1,000 of the unamortized discount on bonds payable will be amortized in 2016. 6. The notes payable are bank loans secured by long-term investments with a fair value of $60,000. The bank loans will mature in 2016. 7. The bonds payable have an interest rate of 11%. Interest is payable each December 31, and the bonds mature January 1, 2019. 8. 600,000 shares of $1 par value common stock are authorized and 250,000 shares have been issued and are outstanding. Part 2: Income Statement Preparation Presented below is information related to D. B. Stanley Company for 2015. Retained earnings balance, January 1, 2015 $490,000 Sales for the year 12,500,000 Cost of goods sold 8,500,000 Interest revenue 35,000 Selling and administrative expenses 2,350,000 Write-off of goodwill (not tax deductible) 410,000 Income taxes for 2015 452,500 Gain on the sale of investments (normal recurring) 55,000 Loss due to flood damage-extraordinary item (net of tax) 195,000 Loss on the disposition of the wholesale division (net of tax) 220,000 Loss on operations of the wholesale division (net of tax) 45,000 Dividends declared on common stock 125,000 Dividends declared on preferred stock 35,000 2 Part 3: Cash Flow Statement Preparation and Analysis The financial statements of Falcon Company are found below. Comparative Balance Sheets December 31 Assets 2016 2015 Cash $13,000 $16,500 Accounts receivable 14,000 7,000 Merchandise inventory 19,000 12,500 Property, plant, and equipment $35,000 Less: Accumulated depreciation -13,500 Total $39,000 21,500 12,000 27,000 $67,500 $63,000 Accounts payable $15,500 $21,500 Income taxes payable 13,000 10,000 Bonds payable 10,000 5,000 Common stock 12,500 12,500 Retained earnings 16,500 14,000 Total $67,500 $63,000 Liabilities and Stockholders' Equity Falcon Company Income Statement For the Year Ended December 31, 2016 Sales $143,000 Cost of goods sold 97,000 Gross profit 46,000 3 Selling expenses $14,000 Administrative expenses 4,500 18,500 Income from operations 27,500 Interest expense 3,500 Income before income taxes 24,000 Income tax expense 3,500 Net income $20,500 Additional Information 1. Dividends of $18,000 were declared and paid. 2. During 2016 equipment was sold for $5,000 cash. The equipment originally cost $7,500 and had a book value of $5,000 at the time of the sale. 3. All depreciation expense, $4,000, was in the selling expense category. 4. All sales and purchases were on account. 5. Additional equipment was purchased for $3,500 cash. Part 4: Revenue Recognition Worth More Industries is split into two different divisionsClear Water Pools and Madoff Securities. Each operates with its own accounting system and revenue recognition method. Clear Water Pools For fiscal year ending November 30, 2015, Clear Water Pools worked on one construction project. They were awarded a contract for $1,500,000 on May 18, 2015, to construct a swimming pool, and the construction started on June 19, 2015. Their estimated completion costs were $1,250,000 for a 2-year time period that started at the date of the contract. On November 30, 2015, $390,000 of construction costs had been incurred and $475,000 progress billings had been made. On November 30, 2015, the construction costs to complete the project were reviewed and the estimated amount was $810,000, which was lower than projected. The change was due to a decline in raw material costs. Revenue recognition is based upon a percentage-of-completion method. Madoff Securities Madoff Securities uses manufacturers' agents who forward orders for alarm systems and the down payments. Madoff then ships their products from the factory to customers directly. The balance due is then billed directly to the customer, including shipping costs. Orders for $3,000,000 were received during the fiscal year ending November 30, 2015. Madoff received $300,000 in down payments; they billed $2,600,000 for goods and $50,000 in freight costs. Manufactures agents are paid a 10% commission on product price once goods are shipped to the customer. Madoff offers a 90-day warranty on goods after shipment, and the returns have been about 1% of sales. Revenue is recognized at the point of sale by this division. 4 5