Financial Accounting: P5-3 The adjusted trial balance of Side Sweep Company

Financial Accounting 
Problem 5-3 Balance Sheet Adjustment and Preparation 
The adjusted trial balance of Side Sweep Company and other related information for the year 2009 are presented below. 
Side Sweep Company 
Adjusted Trial Balance 
December 31, 2009 
Debits Credits 
Cash 43,000 
Accounts receivable 162,000 
Allowance for doubtful accounts 8,750 
Prepaid insurance 5,490 
Inventory 309,200 
Long-term investments 336,930 
Land 87,000 
Construction work in progress 123,700 
Patents 36,700 
Equipment 399,000 
Accumulated depreciation on equipment 141,000 
Unamortized discount on bonds payable 21,000 
Accounts payable 147,000 
Accrued expenses 49,020 
Notes payable 93,750 
Bonds payable 399,500 
Common stock 505,000 
Premium on common stock 44,000 
Retained earnings 136,000 
1,524,020 1,524,020 
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 and bonds is the same. 
3. The amount of the Construction Work 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 $85,000, 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 unamortized discount on bonds payable, $2,000 will be amortized in 2010. 
6. The notes payable represent bank loans that are secured by long-term investments carried at $121,000. These bank loans are due in 2010. 
7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2020. 
8. 610,000 shares of common stock of a par value of $1 were authorized, of which 505,000 shares were issued and outstanding. 

Prepare a balance sheet, in proper format, as of December 31, 2009 including any notes that should appear directly on the balance sheet.
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