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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

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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 $1,422,900 $1,422,900 We of the long-term investments that consist of stocks (with ownership less than Progress account represents the costs expended to date on a The company rents factory space at the present time.) The Additional information: 1. The LIFO method of inventory value is used. 2. The cost and fair value of the long-term inve 20% of total shares) are the same. 3. The amount of the Construction in Progress account represe building in the process of construction. The company rents factory space at the and on which the building is being constructed cost $85.000, as shown in the train 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. 1 bulamanhoot of

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