Amounts due from customers totaled $171,000 at 12 31 202 During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible An analysis of the receivables revealed that specific accounts totaling $12,400 were deemed to be uncollectible and an estimated 3 of the remaining accounts receivable balance will probably not be collected in 2022 There were no uncollectable receivables estimated at 12 31 2020 On May 1, 2021, Stafford paid $14,400 to renew its comprehensive insurance coverage for one year The premium on the previous one year policy, which expired on April 30, 2021, was $13,200 No adjustment was made in the prior year, Stafford had never heard of a prepaid Stafford is being sued for $100,000 Stafford's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $65,000 All employees are paid weekly on Friday The average payroll is $3,300 (6 day work week) per week Employees were last paid on Friday, December 31 st , 2021 for the week ended December 25 th Although the employees did not work on Christmas Day, Stafford pays them for the day Stafford has made estimated tax payments of $10,000 per quarter for the first three quarters of 2021 Staffords estimated tax rate is 21 Stafford took out a 2 year note payable on April 1, 2021 The note bears interest at 4 Principal and interest are due at maturity The company depreciates their Furniture Fixtures over a useful life of 10 years using the straight line method, with no salvage value The investments account is comprised of two investments One $100,000 bond was purchased at face value and Staffords intends to hold until it matures The interest on these bonds are 3 and is paid annually on January 31 Stafford purchased these bonds on September 1 st of the current year The fair value of these bonds are $102,000 The other investment are shares of Google stock, which were purchased on 4 3 21 for $2,410 share The closing price of Google on 12 31 21, was $2,894 share Stafford Flowers Inc Trial Balance (Unadjusted) 31 Dec 21 Dr Cr Cash $25,600 Accounts receivable 116,200 Inventory 62,000 Investments, at cost 220,500 Furniture and Fixtures 263,200 Accumulated depreciation $102,400 Accounts payable 17,000 Capital stock, $10 par value 50,000 Retained earnings 137,000 Sales 884,200 Notes payable, due 3 31 23 200,000 Cost of Goods Sold 405,100 Salaries expense 174,000 Payroll Taxes 12,400 Income tax expense 30,000 Insurance expense 14,400 Bad Debt expense 7,400 Rent expense 34,200 Utilities expense 12,600 Travel and entertainment expense 13,000 TOTALS $1,390,600 $1,390,600 Required a Prepare accrual basis financial statements for 2021 to be presented to the bank You should include a multiple step income statement, statement of retained earnings and a classified balance sheet A statement of cash flow is not required

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Amounts due from customers totaled $171,000 at 12/31/202 During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible. An

Amounts due from customers totaled $171,000 at 12/31/202 During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible. An analysis of the receivables revealed that specific accounts totaling $12,400 were deemed to be uncollectible and an estimated 3% of the remaining accounts receivable balance will probably not be collected in 2022. There were no uncollectable receivables estimated at 12/31/2020.
On May 1, 2021, Stafford paid $14,400 to renew its comprehensive insurance coverage for one year. The premium on the previous one-year policy, which expired on April 30, 2021, was $13,200. No adjustment was made in the prior year, Stafford had never heard of a prepaid.
Stafford is being sued for $100,000. Stafford's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $65,000.
All employees are paid weekly on Friday. The average payroll is $3,300 (6-day work week) per week. Employees were last paid on Friday, December 31^st, 2021 for the week ended December 25^th. Although the employees did not work on Christmas Day, Stafford pays them for the day.
Stafford has made estimated tax payments of $10,000 per quarter for the first three quarters of 2021. Staffords estimated tax rate is 21%.
Stafford took out a 2 year note payable on April 1, 2021. The note bears interest at 4%. Principal and interest are due at maturity.
The company depreciates their Furniture & Fixtures over a useful life of 10 years using the straight-line method, with no salvage value.
The investments account is comprised of two investments. One $100,000 bond was purchased at face value and Staffords intends to hold until it matures. The interest on these bonds are 3% and is paid annually on January 31. Stafford purchased these bonds on September 1^st of the current year. The fair value of these bonds are $102,000. The other investment are shares of Google stock, which were purchased on 4/3/21 for $2,410/share. The closing price of Google on 12/31/21, was $2,894/share.

Stafford Flowers Inc.
Trial Balance (Unadjusted)
31-Dec-21
	Dr.	Cr.
Cash	$25,600
Accounts receivable	116,200
Inventory	62,000
Investments, at cost	220,500
Furniture and Fixtures	263,200
Accumulated depreciation		$102,400
Accounts payable		17,000
Capital stock, $10 par value		50,000
Retained earnings		137,000
Sales		884,200
Notes payable, due 3/31/23		200,000
Cost of Goods Sold	405,100
Salaries expense	174,000
Payroll Taxes	12,400
Income tax expense	30,000
Insurance expense	14,400
Bad Debt expense	7,400
Rent expense	34,200
Utilities expense	12,600
Travel and entertainment expense	13,000
TOTALS	$1,390,600	$1,390,600

Required: .

a. Prepare accrual basis financial statements for 2021 to be presented to the bank. You should include a multiple step income statement, statement of retained earnings and a classified balance sheet. A statement of cash flow is not required.