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The adjusted trial balance of Pearl Company and other related information for the year 2020 are presented as follows. PEARL COMPANY ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $ 45,240 167,740 $ 9,010 6,210 212,740 343,240 89,240 128,240 36,000 404,240 Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Inventory Equity Investments (long-term) Land Construction in Progress (building) Patents Equipment Accumulated Depreciation-Equipment Discount on Bonds Payable Accounts Payable Accrued Liabilities Notes Payable Bonds Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings 240,310 20,000 152,240 53,440 98,240 204,240 504,240 45,000 146,170 $1,452,890 $1,452,890 Additional information: 1. 2. 3. 4. The LIFO method of inventory value is used. 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. 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 $89,240, as shown in the trial balance. The patents were purchased by the company at a cost of $40,000 and are being amortized on a straight-line basis. Of the discount on bonds payable, $2,000 will be amortized in 2021. The notes payable represent bank loans that are secured by long-term investments carried at $124,240. These bank loans are due in 2021. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2031. 600,000 shares of common stock of a par value of $1 were authorized, of which 504,240 shares were issued and outstanding. 5. 6. 7. 8. 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.)

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