Question

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

WINDSOR COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020
	Debit		Credit
Cash	$   43,170
Accounts Receivable	165,670
Allowance for Doubtful Accounts			$    9,050
Prepaid Insurance	6,250
Inventory	210,670
Equity Investments (long-term)	341,170
Land	87,170
Construction in Progress (building)	126,170
Patents	36,000
Equipment	402,170
Accumulated Depreciation-Equipment			240,350
Discount on Bonds Payable	20,000
Accounts Payable			150,170
Accrued Liabilities			51,370
Notes Payable			96,170
Bonds Payable			202,170
Common Stock			502,170
Paid-in Capital in Excess of Par-Common Stock			45,000
Retained Earnings			141,990
	$1,438,440		$1,438,440

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 $87,170, 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 $122,170. These bank loans are due in 2021.
7.		The bonds payable bear interest at 9% 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 502,170 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.)

Answer 1

WINDSOR COMPANY Balance Sheet December 31, 2020
Assets
Current Assets
Cash		43170
Accounts receivable	165670
Less: Allowance for doubtful accounts	-9,050	156,620
Prepaid insurance		6250
Inventory		210670
Total Current assets		416710
Long term investments
Equity Investments		341,170
Property, plant and equipment
Land	87170
Construction in Process (building)	126170	213340
Equipment	402170
Less: Accumulated Depreciation—Equipment	-240,350	161,820
Total Property, Plant, and Equipment		375,160
Intangible Assets
Patents	36,000	36,000
Total Assets		1,169,040
Liabilities and Stockholders’ Equity
Current Liabilities
Note payable		96170
Accounts Payable		150170
Accrued Liabilities		51370
Total CurrentLiabilities		297710
Long-term Debt
Interest Expense	202,170
Less: Discount on Bonds Payable	20000
Interest Payable		182,170
Total Liabilities		479,880
Stockholders’ Equity
Common Stock
Authorized 600,000 shares of $1 par value; issued and outstanding, 502,170		502,170
Paid-in Capital in Excess of Par—Common Stock		45000
Retained Earnings		141,990
Total Stockholders’ Equity		689,160
		1,169,040