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.
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.
Accounts Payable 1,660
Interest Expense 560
Accounts Receivable 2,580
Interest Payable 80
Accum. Amort. - Copyright 420
Interest Receivable 10
Accum. Amort. - Patent 390
Interest Revenue 90
Accum. Depl. - Gold Mine 4,300
Land 5,000
Accum. Depr. - Bldngs. 3,600
Long-Term Investment in Bonds 4,400
Accum. Depr. - Equip. 1,320
Long-Term Investment in Subsidiary 12,600
Adjustment to Market (debit balance) 260
Loss on Sale of AFS Sec. 260
Administrative Expenses 7,800
Marketable Securities* 2,840
Allowance for Bad Debts 500
Merchandise Inventory 1,390
APIC-Common 2,200
Mortgage Note Payable (30-year) 18,000
APIC-Preferred 1,400
Notes Receivable (short-term) 1,200
APIC-Treasury 300
Patent 1,260
Bonds Payable (15 year) 22,500
Preferred Stock 5,000
Buildings 32,500
Prepaid Insurance 990
Cash 7,120
Rental Revenue 250
Cash Dividends Declared 700
Retained Earnings 8,290
Common Stock 12,000
Salaries Payable 560
Common Stock Dividend Distributable 900
Sales 53,800
Copyright 880
Sales Discounts 820
Cost of Goods Sold 26,200
Sales Returns & Allowances 1,460
Discount on Bonds Payable 1,400
Selling Expenses 12,700
Dividend Revenue 60
Short-Term Notes Payable 950
Dividends Payable 250
SIT Payable 160
Equipment 6,600
Stock Dividends Declared 400
FICA Taxes Payable 140
Subsidiary Income 1,180
FIT Payable 330
Supplies 610
FUTA Taxes Payable 20
SUTA Taxes Payable 60
Gain on Disposal of Plant Assets 120
Treasury Stock 950
Gold Mine 7,100
Unealized Gain on Valuation of MS (Debt) 440
Income Tax Expense 1,080
Unrealized Loss Valuation of MS (Equity) 180
Income Tax Payable 280
Unearned Rental Revenue 300
*short-term bond investments included in Marketable Securities are classified as Available for Sale Securities
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
If you are unable to complete this problem, please allow for someone else to give it a try.
Below is the trial balance of Saturn Corporation on December 31, 2019. The be accounts are listed in alphabetical onder and all accounts have normal balances. de Tine: Balance Acc Tinte Accounts Payable Interest Expense Accounts Receivable Interest Payable Accum. Amort. Copyright Interest Receivable Accum. Amort-Patent Interest Revenue Acum Depl - Gold Mine Acum Depe-Bldings Accum. Depe-Equip Long-Term eventi A t Market balance Losse Sale of AFS See Administrative Expres 7200 Market Securit Allowance for ad Debes Merchandise Inventory 13 APIC-Co Mortgage None Pa y m) APC Preferred Notes Receivable shon-tem) APIC-Treasury Pue 120 Boods Payable (15 year) Preferred Stack Building Prepaidence 7120 Rental Revenue 250 Cash Dividends Declared Retained Earnings Common Stock 12.000 Salaries Payable Common Stock Dividend Distributable 900 Sales 53.800 Copyright Sales Discounts Cost of Goods Sold 26,200 Sales Returns & Allowances 1.466 Discount on and Payable 1,400 Selling Expenses 12,700 Dividend Revenue Short-Term Notes Payable Dividends Payable SIT Payable Equipment Stock Dividends Declared FICA Taxes Payable Sidiary Income LINO FIT Payable Supplies FUTA Taxes Payable SUTA Taxes Payable Gain on Disposal of Plant Assets Treasury Stock Gold Mine 7,100 Uncalized Gain on Valuation of MS (Debt) Income Tax Expense 1.OBO Unrealized Loss Valuation of MS (Equity) INO Income Tax Payable 280 Uncamed Rental Revenue "short-term bond investments included in Marketable Securities are classified as Available for Sale Securities REQUIRED: Prepare the financial statements for the war 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 47 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 cither a contra or adjunct account to the total of paid in capital and retained camings) Long-Term Investments in Bonds are long-term investments Long-Term Investments in Subsidiary Company under the method) are leg-term investments Subsidiary Income (our share of subsidiary net income under the oquity method) is on the income 100 Dividend Revenue is on the income statement Clawfied Balance Sheet We will now have FOUR asset categories current, plant, intangible, and long-term investments Below is the trial balance of Saturn Corporation on December 31, 2019. The be accounts are listed in alphabetical onder and all accounts have normal balances. de Tine: Balance Acc Tinte Accounts Payable Interest Expense Accounts Receivable Interest Payable Accum. Amort. Copyright Interest Receivable Accum. Amort-Patent Interest Revenue Acum Depl - Gold Mine Acum Depe-Bldings Accum. Depe-Equip Long-Term eventi A t Market balance Losse Sale of AFS See Administrative Expres 7200 Market Securit Allowance for ad Debes Merchandise Inventory 13 APIC-Co Mortgage None Pa y m) APC Preferred Notes Receivable shon-tem) APIC-Treasury Pue 120 Boods Payable (15 year) Preferred Stack Building Prepaidence 7120 Rental Revenue 250 Cash Dividends Declared Retained Earnings Common Stock 12.000 Salaries Payable Common Stock Dividend Distributable 900 Sales 53.800 Copyright Sales Discounts Cost of Goods Sold 26,200 Sales Returns & Allowances 1.466 Discount on and Payable 1,400 Selling Expenses 12,700 Dividend Revenue Short-Term Notes Payable Dividends Payable SIT Payable Equipment Stock Dividends Declared FICA Taxes Payable Sidiary Income LINO FIT Payable Supplies FUTA Taxes Payable SUTA Taxes Payable Gain on Disposal of Plant Assets Treasury Stock Gold Mine 7,100 Uncalized Gain on Valuation of MS (Debt) Income Tax Expense 1.OBO Unrealized Loss Valuation of MS (Equity) INO Income Tax Payable 280 Uncamed Rental Revenue "short-term bond investments included in Marketable Securities are classified as Available for Sale Securities REQUIRED: Prepare the financial statements for the war 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 47 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 cither a contra or adjunct account to the total of paid in capital and retained camings) Long-Term Investments in Bonds are long-term investments Long-Term Investments in Subsidiary Company under the method) are leg-term investments Subsidiary Income (our share of subsidiary net income under the oquity method) is on the income 100 Dividend Revenue is on the income statement Clawfied Balance Sheet We will now have FOUR asset categories current, plant, intangible, and long-term investments