The adjusted trial balance of Ivanhoe Company and other related information for the year 2017 are presented as follows.

IVANHOE COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2017
	Debit		Credit
Cash	$ 43,940
Accounts Receivable	166,440
Allowance for Doubtful Accounts			$ 8,930
Prepaid Insurance	6,130
Inventory	211,440
Equity Investments (long-term)	341,940
Land	87,940
Construction in Progress (building)	126,940
Patents	36,000
Equipment	402,940
Accumulated Depreciation-Equipment			240,230
Discount on Bonds Payable	20,000
Accounts Payable			150,940
Accrued Liabilities			52,140
Notes Payable			96,940
Bonds Payable			202,940
Common Stock			502,940
Paid-in Capital in Excess of Par-Common Stock			45,000
Retained Earnings			143,650
	$1,443,710		$1,443,710

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 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 $87,940, 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 2018.
6.		The notes payable represent bank loans that are secured by long-term investments carried at $122,940. These bank loans are due in 2018.
7.		The bonds payable bear interest at 7% payable every December 31, and are due January 1, 2028.
8.		600,000 shares of common stock of a par value of $1 were authorized, of which 502,940 shares were issued and outstanding.

Prepare a balance sheet as of December 31, 2017, so that all important information is fully disclosed.

Answer rating: 100% (QA)

Balance sheet Assets Current assets Cash 43940 Account Receivable 166440 Less Allowance for ... View the full answer