The following is information for ABC-a publicly traded company Balance Sheet at end of 2019 (amounts in thousands) Current Assets Cash Accounts Receivable Inventory Prepaid insurance Total Current Assets Property, Plant and Equipment Accumulated Depreciation Patent AFS Debt Securities Total Assets Current Liabilities Accounts Payable Wages Payable Unearned Revenue Total Current Liabilities Note Payable Bond Payable in 2021 $ $ $ $ $ $ $ $ $ $ $ $ Equity Common Stock ($1 par, 10,000 shares $ APIC $ 4,650 18,260 21,275 5,700 49,885 311,000 (103,500) $ 25,862 1,085 $ 1,600 $ $ 28,547 114,000 30,000 10,000 20,800 92,435 (297) 295,485 Retained Earnings $ Accumulated Other Comprehensive Lc $ Liabilities and Equity $ 36,000 2,100 295,485 Condensed Income Statement for 2019 Sales Cost of Goods Sold Gross Profit Wages Expense Depreciation Expense Amortization Expense Insurance Expense Interest Expense Other Expense Total Expenses Income before Taxes Income Tax Expense Net Income $ $ $ Beginning Total OCI Net Income Dividends Ending Balance $ $ $ $ $ $ $ $ $ $ $ Earnings Per Share Statement of Changes in Stockholders Equity - 2019 CS APIC RE $ 10,000 $ 20,800 $47,468 $ 265,320 148,290 117,030 10,000 $ 23,450 15,220 1,500 767 10,150 3,960 55,047 61,983 13,016 48,967 4.90 20,800 Statement of Comprehensive Income 2019 Net Income Other Comprehensive Income Unrealized Gain on 158 AFS Debt Securities $ Income Tax Effect $ (33) Total Other Comprehensive Ir $ 125 Comprehensive Income AOCI $ (422) $ 125 $48,967 $ (4,000) $92,435 $ (297) $ 48,967 $ 49,125 Results for 2020 Sales Inventory Purchases on Depreciation expense $ 279,300 All sales on credit credit = 191,400 and ending inventory $56200 $ 16,000 not including assets sold, bought or found Patent purchased in 2018 and determined to have remaining useful life of 12 years in 2020 Wages Expense $ 29,250 Paid in cash $ 2,194 owed at end of 2020 Insurance policy indicates that $5,700 was paid in May 2019 for 24 month coverage starting May 1 2019. During 2020 found an asset purchased and recorded in 2016 that had not been depreciated - cost 4,230 no salvage 10 year useful life Sold AFS Debt Securities that cost 400 for 390 in cash ($7 loss in AOCI recorded previously) Sold equipment that cost 3,000 with accumulated depreciation of 2,690 (360 in 2020) for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1, 2020 (first payment due January 1, 2021) 10 year useful life and no salvage Collections on A/R = 275,320 Payments on A/P = 176,500 - all accounts payable deal with inventory All service agreements sold to customers in 2019 completed in 2020. New service agreements sold for $2460 in cash during 2020- 40 percent of the services provided during 2020 Bond terms - interest only for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 2021 Note Payable - payment of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year plus principle Fair value of remaining AFS Debt Securities $1,405 Dec 30, 2020 paid dividends equal to $.50 per share. Other Information Tax rate is 21% (unlike 2019 income taxes have not been paid) Half year convention for depreciation Required: 1. Show journal entries or T accounts for results of 2020 operations. 2. Create an income statement including taxes and required EPS disclosures for 2020. 3. Create a statement of comprehensive income for 2020 4. Create a statement of changes in stockholders equity for 2020 5. Create a balance sheet for the end of 2020. 6. Create a cash flow statement for 2020 using the indirect method. 7. Show any necessary disclosures for 2019 that would be needed if both 2019 and 2020 were to be reported