Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AnyCash Co. started operation in the beginning of 2021. At the end of the year, the company had the following account balances. Prepare the balance

AnyCash Co. started operation in the beginning of 2021. At the end of the year, the company had the following account balances. Prepare the balance sheet, income statement, and statement of retained earnings for AnyCash Co. for the 12 months ended December 31, 2021:

1. AnyCash issued common stock worth $355,084, of which AnyCash recorded $123,366 under Common Stock and $231,718 under Paid-in Capital in Excess of Par.

2. The company had Cash and Cash Equivalents of $190,126, Investments in Marketable Securities for short-term trading purpose of $13,189, Accounts Receivable of $45,610, and Prepayments and Other Assets of $24,940.

3. AnyCash had Long-term Note Receivables of $28,018.

4. AnyCash had Equity Investments in Subsidiaries of $241,521.

5. In the beginning of the year, AnyCash purchased Property and Equipment of $103,610.

6. AnyCash had Intangible Assets-patents of $67,138 and Goodwill of $64,781.

7. AnyCash had Accounts Payable of $67,288 and Accrued Expenses and Other Liabilities of $58,674.

8. AnyCash had a balance of Deferred Revenue and Customer Advances of $41,642. AnyCash expected that it would deliver the products to these customers in the coming six months.

9. AnyCash had bank borrowings of $134,150, of which $7,206 is due in 2022. The remainder was due from 2023 to 2025.

10. AnyCash had Deferred Tax Liabilities of $22,517. These liabilities were not expected to be paid within three years.

11. AnyCash had Pension Liabilities of $7,654. The pension liabilities were not expected to be paid within the next 10 years.

12. AnyCash had Accumulated Other Comprehensive Income (loss) of ($2,185).

13. In 2021, AnyCash had Sales Revenues of $378,789, Cost of Goods Sold of $208,194, R&D expenses of $37,435, Sales and Marketing Expenses of $39,780, General and Administrative Expenses of $22,868 (before any adjustments in 17. below).

14. AnyCash had Investment Income of $31,749, Interest income of $280, Interest Expense of $5,190, and Other Income of $714. AnyCash classified these items as Non-operating income and expenses.

15. AnyCash used corporate income tax rate of 25% to calculate its Income Tax Payable and Income Tax Expenses.

16. AnyCash paid dividend of $3,956 in 2021.

17. Before the financial statements are finalized, you noted that the following needed to be adjusted:

a. The Property and Equipment (cost =$103,610) had useful life of 10 years and no salvage value. AnyCash used the straight-line method to depreciate long-lived assets. Depreciation Expenses have been incorrectly omitted and should have been included in General and Administrative Expenses.

b. AnyCash expected that $2,847 out of the Accounts Receivable of $45,610 was uncollectible. Bad Debt Expenses have been incorrectly omitted and should have been included in General and Administrative Expenses.

c. AnyCash has not calculated the tax expenses and tax payables. Its tax expense was its Income Before Income Tax times 25%. The amount should also be included in current liabilities as Income Tax Payable.

Requirements:

1. Prepare AnyCashs Income Statement for the year ended December 31, 2021.

2. Prepare AnyCashs Balance Sheet on December 31, 2021.

3. Prepare AnyCashs Statement of Retained Earnings for the year ended December 31, 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions

Question

share the enablers and inhibitors to implementing SCF;

Answered: 1 week ago