XHO Company

The following is the adjusted trial balance of the XHO Company as of December 31, 2015:

XHO Company

Adjusted Trial Balance

31-Dec-15

Debits Credits

Cash $49,100

Accounts Receivables 195,700

Allowance for Doubtful Accounts $10,400

Prepaid Insurance 7,100

Inventory 369,300

Long-term Investments 405,800

Land 101,700

Construction Work in Process 148,400

Patents 43,200

Equipment 478,800

Accumulated Depreciation – Equipment 167,600

Unamortized Discount on Bonds Payable 24,000

Accounts Payable 177,200

Accrued Expenses 58,900

Notes Payable 112,500

Bonds Payable 478,800

Common Stock 598,500

Premium on Common Stock 53,900

Retained Earnings 165,300

$1,823,100 $1,823,100

Additional information:

1. The company purchased the patents for $48,000 and amortizes the cost using the straight-line method of amortization.

2. In 2016, $2,400 of the unamortized discount on bonds payable will be amortized.

3. The long-term investments consist of both stocks and bonds. The costs of the investments equal the fair market value of the investments.

4. The company has an outstanding bank loan recorded as a notes payable. The loan is due in 2016 and is secured by long-term investments in the amount of $144,000.

5. The bonds payable pay 8% interest each December 31. They are due on January 1, 2026.

6. The Construction Work in Process represents a new factory building under construction.

7. The Land represents the land on which the new factory is being constructed.

8. The company uses the FIFO method of inventory valuation.

9. The company has authorized 718,000 shares of common stock with a $1 par value. During 2015, there were 598,500 shares issued and outstanding.

10. The company ends its accounting year on December 31.

Instructions:

Prepare a balance sheet in good form as of December 31, 2015 which fully discloses all important information.