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Assessment 2 Information, Parts 14

Part 1: Classified Balance Sheet

The adjusted trial balance of Jordan Contracting and other related information for the year 2018 is presented below.

Adjusted Trial Balance
December 31, 2018
	Debits	Credits
Cash	$22,550
Accounts Receivable	89,925
Allowance for Doubtful Accounts		$4,785
Prepaid Insurance	3,245
Inventory	169,675
Long-term Investments	186,450
Land	46,750
Construction Work in Progress	68,200
Patents	19,800
Equipment	220,000
Accumulated Depreciation of Equipment		77,000
Unamortized Discount on Bonds Payable	11,000
Accounts Payable		81,400
Accrued Expenses		27,060
Notes Payable		51,700
Bonds Payable		220,000
Capital Stock		275,000
Premium on Capital Stock		24,750
Retained Earnings		75,900
	$837,595	$837,595

Additional Information

1. The LIFO method of inventory valuation is used.
2. The cost and fair value of the long-term investments consisting of stock and bonds is the same.
3. The amount of Construction Work in Progress account represents the costs expended to date on a building in the process of being constructed. The land on which the building sits cost $46,750.
4. The patents were purchased at a cost of $11,000 and are being amortized on a straight-line basis.
5. $1,000 of the unamortized discount on bonds payable will be amortized in 2019.
6. The notes payable are bank loans secured by long-term investments with a fair value of $66,000. The bank loans will mature in 2019.
7. The bonds payable have an interest rate of 11%. Interest is payable each December 31, and the bonds mature January 1, 2020.
8. 600,000 shares of $1 par value common stock are authorized and 150,000 shares have been issued and are outstanding.

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