Instructions Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and pre- ferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short- term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same P5.3 (LO 2) (Balance Sheet Adjustment and Preparation) The adjusted trial balance of East- wood Company and other related information for the year 2020 are presented as follows. Eastwood Company Adjusted Trial Balance December 31, 2020 Credit Debit $ 41,000 163,500 $ 8,700 Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Inventory Equity Investments (long-term) Land Construction in Process (building) Patents Equipment Accumulated Depreciation-Equipment Discount on Bonds Payable Accounts Payable Accrued Liabilities Notes Payable 5,900 208,500 339,000 85,000 124,000 36,000 400,000 240,000 20.000 148,000 49,200 94,000 Debit Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Credit 200.000 500,000 45.000 138,000 $1.422,000 $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 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 I were authorized, of which 500,000 shares were issued and outstanding