Balance sheet end of 2019 Current assets cash 4650 A/R 18260 inventory 21275 prepaid insurance 5700 total current assets 49885 property plant equipment 311000 accumulated depreciation -103500 AFS securities 2100 patent 36000 total assets 295485 current liabilities accounts payable 25862 wages payable 1085 unearned revenue 1600 total current liabilities 28547 note payable 114000 bond payable in 2021 30000 equity common stock 1 par, 10,000 shares 10000 APIC 20800 RE 92435 accumulated other comprehensive loss -297 liabilities and equity 295485 condensed income statement 2019 sales 265320 COGS 148290 gross profit 117030 wages expense 23430 depreciation expense 15220 amortization expense 1500 insurance expense 767 interest expense 10150 other expense 3960 total expenses 55047 income before taxes 61983 income tax expense 13016 net income 48967 earnings per share 4.90 statement of stockholders equity -2019 CS APIC RE AOCI beginning 10000 20800 47468 -422 total OCI 125 net income 48967 dividends -4000 ending balance 10000 20800 92435 -297 statement of comprehensive income 2019 net income 48967 other comprehensive income unrealized gain on AFS debt securities 158 income tax effect -33 total other comprehensive income 125 comprehensive income 49125 Results for 2020 Sales $ 279,300 All sales on credit I nventory Purchases on credit = 191,400 and ending inventory $56200 Depreciation expense 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. Prepare income statement including taxes and required EPS disclosures for 2020. 3. prepare statement of comprehensive income for 2020 4. prepare statement of changes in stockholders equity for 2020 5. form a balance sheet for the end of 2020. 6. prepare 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