AC201: Intermediate Accounting Homework.

Ctrl page (1) AC201 Symphony Low Sculptures) At the end of the 2020 fiscal year, Symphony Lawn Sculptures' accountants have finished preparing the firm's adjusted trial balance and are about to prepare the company's main financials for the period. Use the information below as well as the adjusted trial balance provided to help the company's accountants prepare these financials: Income Statement Symphony Lawn Sculptures will elect to display its selling expenses and administrative expenses as individual line items then disclose the composition of these expenses in the notes to the financial statement. Symphony pays a 20% corporate tax and will use this figure for determining applicable income taxes for discontinued operations. Symphony has $8,600 of net income allocated to noncontrolling interests. The company had 100,000 weighted average shares of common stock outstanding during 2020 and wants to disclose this information in the notes to its financial statements. The company has chosen to disclose the breakdown of EPS between income from continuing operations, income from discontinued operations, and gains/losses on the discontinuing of these operations right in the income statement. Statement of Retained Earnings Symphony Lawn Sculpture had $145,000 in retained earnings on its books as of January 1", 2020 After 2019's financials were released, the company's accountants realized that a $5,000 sale was inadvertently recorded twice in the journal. The company has already fixed this error on its books but this overstatement of revenue must be disclosed in a prior period adjustment. Statement of Comprehensive Income The company has but one unrealized transaction that will affects its comprehensive income-a $1,000 unrealized gain, net of tax, on its equity investments. Balance Sheet Symphony Lawn Sculptures would like to disclose the following information in the notes to the balance sheet: Symphony has restricted $10,000 in cash for the purchase of new equipment. The company does not believe that the purchase will actually happen until sometime during the 2024 fiscal year. The firm uses the percent-of-receivables method for establishing an allowance for bad debt. Symphony believes that 3% of all outstanding receivables will ultimately be uncollectible. page (3) Credit 330 42,000 70,000 Symphony Lawn Sculptues Adjusted Trial Balance 31-Dec-20 Account Debit Cash $ 300,000 Accounts Receivable 11,000 Allowance for Bad Debt Finished Goods Inventory 12,500 WIP Inventory 6,500 Raw Materials Inventory 9,000 Prepaid Expenses 2,000 Equipment 72,000 Acc. Dep.-Equipment Building 175,000 Acc. Dep.-Building Land 45,000 Equity Investments 25,000 Goodwill 30,000 Copyrights 8,000 Accounts Payable Accrued Liabilities Short-term Notes Payable Long-term Notes Payable Common Stock-$1 Par PIC-Common Retained Earnings Cash Dividends 64,330 Sales Revenue-Sculpture Division Net Income-Fountain Division Sales Discounts 10,000 Sales Returns & Allowances 4,500 Gain on Sale of Equity Investments Cost of Goods Sold 415,000 Advertising Expense 50,000 Depreciation Expense-Selling 6,000 Depreciation Expense-Administrative 4,000 Utilities Expense-Selling 18,000 Utilities Expense-Administrative 23,000 Salaries Expense-Selling 86,000 Salaries Expense-Administrative 144,000 Research and Development Expense 10,000 Interest Expense 1,500 Loss on Disposal of Fountain Division 10,000 Income Tax Expense 27,400 Total $ 1,569,730 19,800 5,600 3,000 30,000 100,000 215,000 140,000 900,000 40,000 4,000 $ 1,569,730 Ctrl page (1) AC201 Symphony Low Sculptures) At the end of the 2020 fiscal year, Symphony Lawn Sculptures' accountants have finished preparing the firm's adjusted trial balance and are about to prepare the company's main financials for the period. Use the information below as well as the adjusted trial balance provided to help the company's accountants prepare these financials: Income Statement Symphony Lawn Sculptures will elect to display its selling expenses and administrative expenses as individual line items then disclose the composition of these expenses in the notes to the financial statement. Symphony pays a 20% corporate tax and will use this figure for determining applicable income taxes for discontinued operations. Symphony has $8,600 of net income allocated to noncontrolling interests. The company had 100,000 weighted average shares of common stock outstanding during 2020 and wants to disclose this information in the notes to its financial statements. The company has chosen to disclose the breakdown of EPS between income from continuing operations, income from discontinued operations, and gains/losses on the discontinuing of these operations right in the income statement. Statement of Retained Earnings Symphony Lawn Sculpture had $145,000 in retained earnings on its books as of January 1", 2020 After 2019's financials were released, the company's accountants realized that a $5,000 sale was inadvertently recorded twice in the journal. The company has already fixed this error on its books but this overstatement of revenue must be disclosed in a prior period adjustment. Statement of Comprehensive Income The company has but one unrealized transaction that will affects its comprehensive income-a $1,000 unrealized gain, net of tax, on its equity investments. Balance Sheet Symphony Lawn Sculptures would like to disclose the following information in the notes to the balance sheet: Symphony has restricted $10,000 in cash for the purchase of new equipment. The company does not believe that the purchase will actually happen until sometime during the 2024 fiscal year. The firm uses the percent-of-receivables method for establishing an allowance for bad debt. Symphony believes that 3% of all outstanding receivables will ultimately be uncollectible. page (3) Credit 330 42,000 70,000 Symphony Lawn Sculptues Adjusted Trial Balance 31-Dec-20 Account Debit Cash $ 300,000 Accounts Receivable 11,000 Allowance for Bad Debt Finished Goods Inventory 12,500 WIP Inventory 6,500 Raw Materials Inventory 9,000 Prepaid Expenses 2,000 Equipment 72,000 Acc. Dep.-Equipment Building 175,000 Acc. Dep.-Building Land 45,000 Equity Investments 25,000 Goodwill 30,000 Copyrights 8,000 Accounts Payable Accrued Liabilities Short-term Notes Payable Long-term Notes Payable Common Stock-$1 Par PIC-Common Retained Earnings Cash Dividends 64,330 Sales Revenue-Sculpture Division Net Income-Fountain Division Sales Discounts 10,000 Sales Returns & Allowances 4,500 Gain on Sale of Equity Investments Cost of Goods Sold 415,000 Advertising Expense 50,000 Depreciation Expense-Selling 6,000 Depreciation Expense-Administrative 4,000 Utilities Expense-Selling 18,000 Utilities Expense-Administrative 23,000 Salaries Expense-Selling 86,000 Salaries Expense-Administrative 144,000 Research and Development Expense 10,000 Interest Expense 1,500 Loss on Disposal of Fountain Division 10,000 Income Tax Expense 27,400 Total $ 1,569,730 19,800 5,600 3,000 30,000 100,000 215,000 140,000 900,000 40,000 4,000 $ 1,569,730