P5-3 (Balance Sheet Adjustment and Preparation) The adjusted trial balance of Eastwood Company and other related information for the year 2014 are presented as follows. Instructions Prepare a balance sheet as of December 31, 2014, so that all important information is fully disclosed

EASTWOOD COMPANY ADJUSTED TRIAL BALANCE 31-Dec-14 Debit Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Inventory Equity Investments (long-term) Land Construction in Process (building) Patents Equipment Accumulated DepreciationEquipment Discount on Bonds Payable Accounts Payable Accrued Liabilities Notes Payable Bonds Payable Common Stock Paid-in Capital in Excess of ParCommon Stock Retained Earnings Credit $41,000.00 $163,500.00 $8,700.00 $5,900.00 $208,500.00 $339,000.00 $85,000.00 $124,000.00 $36,000.00 $400,000.00 $240,000.00 $20,000.00 $1,422,900.00 $148,000.00 $49,200.00 $94,000.00 $200,000.00 $500,000.00 $45,000.00 $138,000.00 $1,422,900.00 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 and bonds is 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 2015. 6. The notes payable represent bank loans that are secured by long-term investments carried at $120,000. These bank loans are due in 2015. 7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2025. 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, 2014, so that all important information is fully disclosed