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1 Required information Common Stock Paid-in Capital Beg. Bal. Beg. Bal End. Bal End. Bal. Preferred Stock Retained Earnings Beg. Bal Beg. Bal End. Bal
1 Required information Common Stock Paid-in Capital Beg. Bal. Beg. Bal End. Bal End. Bal. Preferred Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal. Treasury Stock Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Investment Revenue Gain on Sale of Treasury Bills Beg. Bal. Beg. Bal End. Bal. End. Bal. Cost of Goods Sold Salaries Expense Beg. Bal. Beg. Bal. End. Bal End. Bal Depreciation Expense Amortization Expense Beg. Bal. Beg. Bal. End. Bal End. Bal. Insurance Expense Interest Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. Required information Accounts Receivable Inventory Beg. Bal. Beg. Bal End. Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Long-term Investments Land Beg. Bal Beg. Bal End. Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Beg. Bal. Beg. Bal End. Bal. End. Bal. Patent Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal. Salaries Payable Interest Payable Beg. Bal. Beg. Bal End. Bal. End. Bal. Income Tax Payable Deferred Tax Liability Beg. Bal. Beg. Bal End. Bal. End. Bal. Notes Payable Lease Liability Beg. Bal Beg. Bal e. The preferred stock of Tory Corporation was purchased for $26 million as a long 523 milion note payable to the ARDUOUS COMPANY Comparative Balance Sheets For Year Ended December 31, 2021 ($ in millions) December 31, 2021 and 2020 Revenues and gain: (5 in millions) Sales revenue $ 500 2021 2920 Investment revenue 23 Assets Gain on sale of treasury bills Cash 85 2 5525 Expenses and loss: 12 Accounts receivable 194 198 Cost of goods sold 184 Investment revenue receivable 10 Salaries expense 77 Inventory 2014 Depreciation expense 12 Prepaid insurance 8 12 Amortization expense 2 Long-ters Investment 156 125 Insurance expense 11 Land 200 154 Interest expense 32 Buildings and equipment GP Loss on sale of equipment Less: Accumulated depreciation (181) (124) Income tax expense 40 376 Patent 37 39 Net income $ 149 $ 1,386 $ 1,105 Liabilities Accounts payable $ 545 73 Additional information from the accounting records Salaries payable le 15 Interest payable (bonds) 12 8 Income tax payable a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity 16 Deferred tax liability 15 12 method investee. Notes payable 23 e b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills Lease liability 93 e as cash equivalents Bonds payable 219 279 c Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major Less: Discount on bonds (23) (26) components of the equipment were unharmed and were sold for $17 million Shareholders' Equity d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to Common stock 410 Paid-in capital-excess of par Increase by $ 3 million 129 97 Preferred stock Retained earnings 278 Land costing $46 million was acquired by issuing $23 million cash and a 15%. four-year. $23 million note payable to the Less: Treasury stock seller $ 1,386 $ 1,105 2. The right to use a building was acquired with a 15-year lease agreement, present value of lease payments. $100 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021 h. $60 million of bonds were retired at maturity. ARDUOUS COMPANY 1. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock Income Statement was $8 per share at that time For Year Ended December 31, 2021 j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million (5 in millions) Revenues and gain: Sales revenue s See Investment revenue 23 Gain on sale of treasury bills $ 525 Expenses and loss: Required: Cost of goods sold 184 Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (.e., 10,000 should be entered as 10).) Salaries expense 77 Depreciation expense 12 Amortization expense 2 Cash Insurance expense 11 Interest expense 32 Beg Bal Loss on sale of equipment 18 Operating Activities: Income tax expense 376 Net income $ 149 219 Additional information from the accounting records a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity Investing Activities 1 Required information Common Stock Paid-in Capital Beg. Bal. Beg. Bal End. Bal End. Bal. Preferred Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal. Treasury Stock Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Investment Revenue Gain on Sale of Treasury Bills Beg. Bal. Beg. Bal End. Bal. End. Bal. Cost of Goods Sold Salaries Expense Beg. Bal. Beg. Bal. End. Bal End. Bal Depreciation Expense Amortization Expense Beg. Bal. Beg. Bal. End. Bal End. Bal. Insurance Expense Interest Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. Required information Accounts Receivable Inventory Beg. Bal. Beg. Bal End. Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Long-term Investments Land Beg. Bal Beg. Bal End. Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Beg. Bal. Beg. Bal End. Bal. End. Bal. Patent Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal. Salaries Payable Interest Payable Beg. Bal. Beg. Bal End. Bal. End. Bal. Income Tax Payable Deferred Tax Liability Beg. Bal. Beg. Bal End. Bal. End. Bal. Notes Payable Lease Liability Beg. Bal Beg. Bal e. The preferred stock of Tory Corporation was purchased for $26 million as a long 523 milion note payable to the ARDUOUS COMPANY Comparative Balance Sheets For Year Ended December 31, 2021 ($ in millions) December 31, 2021 and 2020 Revenues and gain: (5 in millions) Sales revenue $ 500 2021 2920 Investment revenue 23 Assets Gain on sale of treasury bills Cash 85 2 5525 Expenses and loss: 12 Accounts receivable 194 198 Cost of goods sold 184 Investment revenue receivable 10 Salaries expense 77 Inventory 2014 Depreciation expense 12 Prepaid insurance 8 12 Amortization expense 2 Long-ters Investment 156 125 Insurance expense 11 Land 200 154 Interest expense 32 Buildings and equipment GP Loss on sale of equipment Less: Accumulated depreciation (181) (124) Income tax expense 40 376 Patent 37 39 Net income $ 149 $ 1,386 $ 1,105 Liabilities Accounts payable $ 545 73 Additional information from the accounting records Salaries payable le 15 Interest payable (bonds) 12 8 Income tax payable a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity 16 Deferred tax liability 15 12 method investee. Notes payable 23 e b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills Lease liability 93 e as cash equivalents Bonds payable 219 279 c Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major Less: Discount on bonds (23) (26) components of the equipment were unharmed and were sold for $17 million Shareholders' Equity d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to Common stock 410 Paid-in capital-excess of par Increase by $ 3 million 129 97 Preferred stock Retained earnings 278 Land costing $46 million was acquired by issuing $23 million cash and a 15%. four-year. $23 million note payable to the Less: Treasury stock seller $ 1,386 $ 1,105 2. The right to use a building was acquired with a 15-year lease agreement, present value of lease payments. $100 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021 h. $60 million of bonds were retired at maturity. ARDUOUS COMPANY 1. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock Income Statement was $8 per share at that time For Year Ended December 31, 2021 j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million (5 in millions) Revenues and gain: Sales revenue s See Investment revenue 23 Gain on sale of treasury bills $ 525 Expenses and loss: Required: Cost of goods sold 184 Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (.e., 10,000 should be entered as 10).) Salaries expense 77 Depreciation expense 12 Amortization expense 2 Cash Insurance expense 11 Interest expense 32 Beg Bal Loss on sale of equipment 18 Operating Activities: Income tax expense 376 Net income $ 149 219 Additional information from the accounting records a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity Investing Activities
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