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The trial balance of Eastwood Inc. and other related information for the year 2023 follows: Cash Accounts receivable Allowance for expected credit losses Prepaid insurance Inventory FV-OCI investments Land Eastwood Inc. Trial Balance December 31, 2023 Construction in process Intangible assets-patents Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Notes payable Bonds payable Common shares Accumulated other comprehensive income Retained earnings Debits $41,000 163,500 5,900 208,500 339,000 85,000 124,000 36,000 400,000 Credits $8,700 240,000 148,000 49,200 94,000 180,000 500,000 45,000 138,000

The trial balance of Eastwood Inc. and other related information for the year 2023 follows: Cash Accounts receivable Allowance for expected credit losses Prepaid insurance Inventory FV-OCI investments Land Eastwood Inc. Trial Balance December 31, 2023 Construction in process Intangible assets-patents Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Notes payable Bonds payable Common shares Accumulated other comprehensive income Retained earnings Debits $41,000 163,500 5,900 208,500 339,000 85,000 124,000 36,000 400,000 Credits $8,700 240,000 148,000 49,200 94,000 180,000 500,000 45,000 138,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Retained earnings Additional information: $1,402,900 138,000 (a) $1,402,900 1. The inventory has a net realizable value of $212,000. The FIFO method of inventory valuation is used. 2. The FV-OCI investments' fair value is $378,000. 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 the patents are being amortized on a straight-line basis. 5. The bonds payable have a face value of $200,000, bear interest at 7% payable every December 31, and are due January 1, 2035. 6. Of the remaining $20,000 unamortized discount on bonds payable (face value $200,000 less carrying amount $180,000). $2,000 will be amortized in 2024. The notes payable represent bank loans that are secured by FV-OCI investments carried at $120,000. These loans are due in 2024. 8. For common shares, an unlimited number are authorized and 500,000 are issued and outstanding. Prepare a statement of financial position as at December 31, 2023, ensuring that all important information is fully disclosed. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings, and Equipment.) EASTWOOD INC. Statement of Financial Position For the Year Ended December 31, 2023 Assets
Transcribed Image Text:Retained earnings Additional information: $1,402,900 138,000 (a) $1,402,900 1. The inventory has a net realizable value of $212,000. The FIFO method of inventory valuation is used. 2. The FV-OCI investments' fair value is $378,000. 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 the patents are being amortized on a straight-line basis. 5. The bonds payable have a face value of $200,000, bear interest at 7% payable every December 31, and are due January 1, 2035. 6. Of the remaining $20,000 unamortized discount on bonds payable (face value $200,000 less carrying amount $180,000). $2,000 will be amortized in 2024. The notes payable represent bank loans that are secured by FV-OCI investments carried at $120,000. These loans are due in 2024. 8. For common shares, an unlimited number are authorized and 500,000 are issued and outstanding. Prepare a statement of financial position as at December 31, 2023, ensuring that all important information is fully disclosed. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings, and Equipment.) EASTWOOD INC. Statement of Financial Position For the Year Ended December 31, 2023 Assets
The trial balance of Eastwood Inc. and other related information for the year 2023 follows: Cash Accounts receivable Allowance for expected credit losses Prepaid insurance Inventory FV-OCI investments Land Eastwood Inc. Trial Balance December 31, 2023 Construction in process Intangible assets-patents Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Notes payable Bonds payable Common shares Accumulated other comprehensive income Retained earnings Debits $41,000 163,500 5,900 208,500 339,000 85,000 124,000 36,000 400,000 Credits $8,700 240,000 148,000 49,200 94,000 180,000 500,000 45,000 138,000
Transcribed Image Text:The trial balance of Eastwood Inc. and other related information for the year 2023 follows: Cash Accounts receivable Allowance for expected credit losses Prepaid insurance Inventory FV-OCI investments Land Eastwood Inc. Trial Balance December 31, 2023 Construction in process Intangible assets-patents Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Notes payable Bonds payable Common shares Accumulated other comprehensive income Retained earnings Debits $41,000 163,500 5,900 208,500 339,000 85,000 124,000 36,000 400,000 Credits $8,700 240,000 148,000 49,200 94,000 180,000 500,000 45,000 138,000
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