Check The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also ARDUOUS COMPANY Comparative Balance Sheets December 31, 2821 and 2020 ($ in millions) 2021 2020 Assets Cash $ 324 $ 100 Accounts receivable 209 213 Investment revenue receivable 25 23 Inventory 224 219 Prepaid insurance 23 27 Long-term investment 156 125 Land 215 169 Buildings and equipment 509 419 Less: Accumulated depreciation (116) (139) Patent 67 $ 1,636 $ 1,225 Liabilities Accounts payable $ 69 $ 103 Salaries payable 25 30 Interest payable (bonds) 27 23 Income tax payable 31 33 Deferred tax liability 30 22 33 27 Le Lax payause Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of pan Preferred stock Retained earnings Less: Treasury stock * 30 23 153 234 (23) @ 294 (26) 430 410 154 142 94 @ 398 189 (9) $ 1,636 $ 1,225 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 715 Investment revenue 68 Gain on sale of treasury bills 2 $ 785 Expenses and loss: Cost of goods sold 199 Salaries expense 92 Depreciation expense 12 Amortization expense 2 Insurance expense 26 Interest expense 47 Loss on sale of equipment 21 Income tax expense 55 454 Net income $ 331 NN d Additional information from the accounting records a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $2 million Arduous Company classifies its investments in Treasury bills as cash equivalents. c Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $14 million d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year. $23 million note payable to the seller. 9. The right to use a building was acquired with a 15-year lease agreement, present value of lease payments, $160 million Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021 h. $60 million of bonds were retired at maturity 1. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time J. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million ems Saved Help Save & E Ches Required information Required: Prepare the T-accounts for Arduous Company (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Cash Bog. Bal Operating Activities: Investing Activities: Financing Activities: Required information Investing Activities: Financing Activities: End. Bal Required information Accounts Receivable Beg. Bal. Beg Bal End, Bal End. Bal. Prepaid Insurance Beg. Bal. Beg. Bal End. Bal. End. Bal Long-term Investments Beg. Bal. Beg. Bal S
