Cash The following is information for ABC-a publicly traded company Condensed Balance Sheet at end of 2020 famounts in thousands) Income Statement for 2020 Current Assets Statement of Comprehensive income 2020 $ 4,650 Sales $ 265,120 Net income Accounts Receivable $ $45,057 18,260 Cost of Goods Sold 5 14.10 Inventory Other Comprehensive Income $ 21,275 Gross Profit $ 117,050 Unrealized Gain on Prepaid insurance $ 5,700 Total Current Assets AS Debt Securities $ 154 $ 49,885 Wages Expense $ 23,450 Income Tastfeet 5 (33) Property, Plant and Equipment $ 311,000 Depreciation Expense 5 15,220 Accumulated Depreciation Total Other Comprehensive in $ 12 $ (103.500 Amortization Expense $ 1,500 Patent $ 36.000 Insurance Expense 767 Comprehensive income $49,125 AFS Debt Securities $ 2.100 Interest Expense $ Total Assets 10,150 $ 295,485 Other Expense $ 3.560 Current Liabilities Total Expenses 5 55,047 Accounts Payable $ 25,212 Income before Taxes $ 61,183 Interest Payable $ 650 Income Tax Expense $ 12,016 Wages Payable $ 1,085 Net Income Uncamned Revenue $ 1.600 Total Current Liabilities $ 28,547 Earnings Per Share $ 4.50 Note Payable $ 114,000 Bond Payable in 2022 $ 30,000 Statement of Changes in Stockholders Equity - 2020 Equity Common Stock (51 par, 10,000 shares S 10,000 cs APIC RE CI APIC $ 20,800 Beginning $ 10,000 $ 20,800 5 422) Retained Earnings $ 92,435 Total OCI $ 125 Accumulated Other Comprehensive Lo (297) Net Income $ 48,967 Liabilities and Equity $295,485 Dividends $ 14,000 Ending Balance $10,000 $20,800 $ 92,435 $ 1297) Results for 2021 Sales $ 281,300 All sales on credit Inventory Purchases on credit - 191400 and ending inventory S56200 Depreciation expense $ 16,000 not including assets sold bought or found Patent purchased in 2016 and determined to have remaining useful life of 10 years in 2021 Wages Expense $ 27,450 Paid in cash $ 2,194 owed at end of 2020 Insurance policy indicates that $5,700 was paid in May 2020 for 24 month coverage starting May 1 2020 During 2021 found an asset purchased and recorded in 2018 that had not been deprecated cost 6,230 no salvage 10 yew useful life Sold AFS Debt Securities that cost 400 for 190 in cash ($7 loss in AOCI recorded previously Sold equipment that cost 3,000 with accumulated depreciation of 2,690 for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1, 2021 (first payment due January 1, 2022) 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 preements sold to customers in 2020 completed in 2021. New service apreements sold for $2460 in cash during 2021 40 percent of the services provided during 2021 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 2022 Note Payable - 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2% per quarter) Each note payment pays the interest since the last payment with any remaining amount going toward principle Fair value of remaining AFS Debt Securities $1,400 Other Information Tax rate is 21% (unlike 2020 income taxes have not been pald) Half year convention for depreciation Required: 1. Show journal entries or Taccounts for results of 2021 operations. 2. Create an income statement including taxes and required EPS disclosures for 2021. 3. Create a statement of comprehensive income for 2021 4. Create a statement of changes in stockholders equity for 2021 5. Create a balance sheet for the end of 2021. 6. Create a cash flow statement for 2021 using the indirect method. 7. Show any necessary disclosures for 2020 that would be needed if both 2020 and 2021 were to be reported Cash The following is information for ABC-a publicly traded company Condensed Balance Sheet at end of 2020 famounts in thousands) Income Statement for 2020 Current Assets Statement of Comprehensive income 2020 $ 4,650 Sales $ 265,120 Net income Accounts Receivable $ $45,057 18,260 Cost of Goods Sold 5 14.10 Inventory Other Comprehensive Income $ 21,275 Gross Profit $ 117,050 Unrealized Gain on Prepaid insurance $ 5,700 Total Current Assets AS Debt Securities $ 154 $ 49,885 Wages Expense $ 23,450 Income Tastfeet 5 (33) Property, Plant and Equipment $ 311,000 Depreciation Expense 5 15,220 Accumulated Depreciation Total Other Comprehensive in $ 12 $ (103.500 Amortization Expense $ 1,500 Patent $ 36.000 Insurance Expense 767 Comprehensive income $49,125 AFS Debt Securities $ 2.100 Interest Expense $ Total Assets 10,150 $ 295,485 Other Expense $ 3.560 Current Liabilities Total Expenses 5 55,047 Accounts Payable $ 25,212 Income before Taxes $ 61,183 Interest Payable $ 650 Income Tax Expense $ 12,016 Wages Payable $ 1,085 Net Income Uncamned Revenue $ 1.600 Total Current Liabilities $ 28,547 Earnings Per Share $ 4.50 Note Payable $ 114,000 Bond Payable in 2022 $ 30,000 Statement of Changes in Stockholders Equity - 2020 Equity Common Stock (51 par, 10,000 shares S 10,000 cs APIC RE CI APIC $ 20,800 Beginning $ 10,000 $ 20,800 5 422) Retained Earnings $ 92,435 Total OCI $ 125 Accumulated Other Comprehensive Lo (297) Net Income $ 48,967 Liabilities and Equity $295,485 Dividends $ 14,000 Ending Balance $10,000 $20,800 $ 92,435 $ 1297) Results for 2021 Sales $ 281,300 All sales on credit Inventory Purchases on credit - 191400 and ending inventory S56200 Depreciation expense $ 16,000 not including assets sold bought or found Patent purchased in 2016 and determined to have remaining useful life of 10 years in 2021 Wages Expense $ 27,450 Paid in cash $ 2,194 owed at end of 2020 Insurance policy indicates that $5,700 was paid in May 2020 for 24 month coverage starting May 1 2020 During 2021 found an asset purchased and recorded in 2018 that had not been deprecated cost 6,230 no salvage 10 yew useful life Sold AFS Debt Securities that cost 400 for 190 in cash ($7 loss in AOCI recorded previously Sold equipment that cost 3,000 with accumulated depreciation of 2,690 for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1, 2021 (first payment due January 1, 2022) 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 preements sold to customers in 2020 completed in 2021. New service apreements sold for $2460 in cash during 2021 40 percent of the services provided during 2021 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 2022 Note Payable - 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2% per quarter) Each note payment pays the interest since the last payment with any remaining amount going toward principle Fair value of remaining AFS Debt Securities $1,400 Other Information Tax rate is 21% (unlike 2020 income taxes have not been pald) Half year convention for depreciation Required: 1. Show journal entries or Taccounts for results of 2021 operations. 2. Create an income statement including taxes and required EPS disclosures for 2021. 3. Create a statement of comprehensive income for 2021 4. Create a statement of changes in stockholders equity for 2021 5. Create a balance sheet for the end of 2021. 6. Create a cash flow statement for 2021 using the indirect method. 7. Show any necessary disclosures for 2020 that would be needed if both 2020 and 2021 were to be reported