Problem 5 3 The adjusted trial balance of Pharoah Company and other related information for the year 2020 are presented as follows PHAROAH COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $ 43,440 Accounts Receivable 165,940 Allowance for Doubtful Accounts $ 9,050 Prepaid Insurance 6,250 Inventory 210,940 Equity Investments (long term) 341,440 Land 87,440 Construction in Progress (building) 126,440 Patents 36,000 Equipment 402,440 Accumulated Depreciation Equipment 240,350 Discount on Bonds Payable 20,000 Accounts Payable 150,440 Accrued Liabilities 51,640 Notes Payable 96,440 Bonds Payable 202,440 Common Stock 502,440 Paid in Capital in Excess of Par Common Stock 45,000 Retained Earnings 142,530 $1,440,330 $1,440,330 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 $87,440, 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 $122,440 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 502,440 shares were issued and outstanding Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed (List Current Assets in order of liquidity List Property, Plant and Equipment in order of Land, Building and Equipment Enter account name only and do not provide the descriptive information provided in the question )

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Problem 5-3 The adjusted trial balance of Pharoah Company and other related information for the year 2020 are presented as follows. PHAROAH COMPANY ADJUSTED TRIAL

Problem 5-3

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

PHAROAH COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020
	Debit	Credit
Cash	$ 43,440
Accounts Receivable	165,940
Allowance for Doubtful Accounts		$ 9,050
Prepaid Insurance	6,250
Inventory	210,940
Equity Investments (long-term)	341,440
Land	87,440
Construction in Progress (building)	126,440
Patents	36,000
Equipment	402,440
Accumulated Depreciation-Equipment		240,350
Discount on Bonds Payable	20,000
Accounts Payable		150,440
Accrued Liabilities		51,640
Notes Payable		96,440
Bonds Payable		202,440
Common Stock		502,440
Paid-in Capital in Excess of Par-Common Stock		45,000
Retained Earnings		142,530
	$1,440,330	$1,440,330

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 $87,440, 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 $122,440. 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 502,440 shares were issued and outstanding.

Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)