The trial balance of Eastwood Inc. and other related information for the year 2014 follows:

Additional information:
1. The inventory has a net realizable value of $212,000. The FIFO method of inventory valuation is used.
2. The fair value- OCI investments' fair value is $478,000.
3. The amount of the Construction in Process account represents the costs to date on a building in the process of construction. (The company is renting factory space while waiting for the new building to be completed.) The land that the building is being constructed on cost $85,000, as shown in the trial balance.
4. The company purchased the patents at a cost of $40,000 and are being amortized on a straight-line basis.
5. Of the 520,000 discount on bonds payable, $2,000 will be amortized in 2015.
6. The notes payable represent bank loans that are secured by fair value-OCI invesm1ents carried at $120,000. These bank loans are due in 2015.
7. The bonds payable bear interest at 11% payable every December 31, and are due January 1, 2025.
8. For common shares, 600,000 are authorized and 500,000 are issued and outstanding.
Instructions
(a) Prepare a statement of financial position as at December 31, 2014, ensuring that all important information is fully disclosed.
(b) From the perspective of a potential creditor, discuss the importance of proper classification of Eastwood's Construction in Process account.

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EASTWOOD INC. Trial Balance December 31, 201 Debits Credits 41,000 163,500 Cash Accounts receivable Allowance for doubtful accounts Prepaid insurance Inventory Fair value-OCl investments Land Construction in progress Intangible assets-patents Equipment Accumulated depreciation equipment Accounts payable Accrued liabilities Notes payable Bonds payable, net of discount Common shares Accumulated other comprehensive income Retained carnings $8,700 5,900 208,500 339,000 85,000 124,000 36,000 400,000 240,000 148,000 49,200 94,000 180,000 500,000 45,000 138,000 $1,402,900 $1,402,900