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26 200 Accounte Recevable 53.800 12,000 Below is the trial balance of Saturn Corporation on December 31, 2019. The accounts are listed in alphabetical

 

26 200 Accounte Recevable 53.800 12,000 Below is the trial balance of Saturn Corporation on December 31, 2019. The accounts are listed in alphabetical order and all accounts have normal balances. Account Title: : Balance: Account Title: Balance: Accounts Payable 1,660 Interest Expense 560 2,580 Interest Payable Interest Receivable 80 Accum. Amort. - Copyright 420 10 Accum. Amort. - Patent 390 Interest Revenue 90 Accum. Depl. - Gold Mine Accum. Depr. - Bldngs. Accum. Depr. - Equip. Adjustment to Market (debit balance) Administrative Expenses 4,300 Land 5,000 3.600 Long-Term Investment in Bonds Long-Term Investment in Subsidiary Lore on 4,400 1,320 12,600 260 Loss on Sale of AFS Sec. 260 7,800 Marketable Securities* 2,840 Allowance for Bad Debts Merchandise Inventory 1 300 1,390 500 so0 APIC-Common 2,200 Mortgage Note Payable (30-year) 18,000 APIC-Preferred APIC-Treasury Bonds Payable (15 year) Ruildin Buildings Cash 1,400 Notes Receivable (short-term) 1,200 1,260 5,000 300 Patent 22,500 Preferred Stock 32,500 Prepaid Insurance 990 000 7 120 7,120 Rental Revenue Retained Earnings Salaries Payable 250 R 200 Cash Dividends Declared 700 8,290 Common Stock 12,000 560 Common Stock Dividend Distributable 900 Sales 53,800 820 Copyright Cost of Goods Sold 880 Sales Discounts Sales Returns & Allowances 1460 Discount on Bonds Payable Selling Expenses Short-Term Notes Payable SIT Payable 1,400 12,700 Dividend Revenue 60 950 Dividends Payable 250 160 Equipment FICA Taxes Payable 6,600 Stock Dividends Declared 400 Subsidiary Income Supplies SUTA Taxes Payable Treasury Stock Unealized Gain on Valuation of MS (Debt) 140 1,180 FIT Payable FUTA Taxes Payable Gain on Disposal of Plant Assets 330 610 20 60 120 950 Gold Mine 7,100 440 Income Tax Expense Income Tax Payable 1,080 Unrealized Loss Valuation of MS (Equity) 180 280 Uneamed Rental Revenue 300 *short-term bond investments included in Marketable Securities are classified as Available for Sale Securities REQUIRED: Prepare the financial statements for the year for Saturn Corporation--a multi-step income statement, a statement of retained earnings and a classified balance sheet. What is different for this project compared to Project #4? 1. New Accounts: Chapter 10: Bonds Payable is a long-term liability account Premium on Bonds Payable and Discount on Bonds Payable are an adjunct and contra account TO the Bonds Payable account Mortgages Payable is a long-term liability account Chapter 12: Marketable Securities is a current asset. Adjustment to Market accounts are either an adjunct (debit balance) OR a contra (credit balance) to the Marketable Securities account. Losses and Gains on Sales of investment assets are realized gains and losses on the income statement Unrealized Losses and Gains on investment assets are on the income statement if the investments are trading securities and are on the stockholders' equity section of the balance sheet if the investments are available for sale securities (as either a contra or adjunct account to the total of paid in capital and retained earnings) Long-Term Investments in Bonds are long-term investments Long-Term Investments in Subsidiary Company (under the equity method) are long-term investments Subsidiary Income (our share of subsidiary net income under the equity method) is on the income statement Dividend Revenue is on the income statement 2. Classified Balance Sheet: We will now have FOUR asset categories: current, plant, intangible, and long-term investments

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Answer Saturn Corporation Trial balance As at Dec 31 2019 Debit Credit Cash 7120 Accounts receivable 2580 Allowance for Bd 500 Interest receivable 10 Merchandise Inventory 1390 Supplies 610 Notes rece... blur-text-image

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