Chris's Beamer Biz, Inc. Statement of Owners' Equity For the Year Ended December 31, 20x1 As you were reviewing the financiat statements with Chris, you discovered that during 20x1, Chris decided that there was excess cash in the business and that it could be placed in higher yield opportunities. Having read about Stablecoin and its related yield, Chris decided that Beamer Bir would purchase USDT. They plan on selling any remaining USDT within 12 months of purchase. None of the USDT transactions below were recorded, but now need to be included in the financial statements. REQUIRED: 1. Record the following journal entries and post them to their respective t-accounts: During the year, Chris participated in the following activities in addition to those reflected in the financial statements provided above: a) Beamer Biz, Inc, purchased \$50,000 USDT at S1/USDT on July 1,201. b) Beamer Biz, Inc, purchased an additional S25,000 USDT at S1/USDT on September 30. 201. c) Beamer Biz, Ine, decided to sell \$18,750 USDT at \$1USDT on December 31,201 d) Interest is paid monthly at an annual rate of 12% (paid last day of cach month). The interest is paid in USDT and is kept in USDT. Interest needs to be recorded on a monthly basis." c) Calculate necessary tax expense that will be paid on these holdings as of December 31th, 201. This tax will be paid in 202. Prepare: Journal entries and T-accounts Prepare: Updated Financial Statements for 20X1: a) Income statement b) Statement of retained carnings -) Balance sheet Stablecoin Case Chris's Beamer Biz, Inc., Year 1 - 20X1 Chris opened a Beamer business on January 1, 20X1. The tax rate is 30% and Chris will pay 201 taxes in 202. The initial financial statements for this business are presented below. Chris's Baamar Blz. Ine d) Prepare a letter to your client Prepare a one-page well-written business memo to Chris explaining any risks associated with their Stablecoin holdings and how their Stablecoin holdings needs to be treated from an accounting perspective (i.e., their financial statements need to be adjusted to reflect the transactions related to their Stablecoin holdings). Appendix Table A-calculation of monthly interest income and month end balances of USDT *Monthly interest is calculated by taking the Stablecoin prior month balance and multiplying it by the interest rate and then dividing by 12 (Quantity of Stable coin * interest rate / 12 months). Chris's Beamer Biz, Inc. Statement of Owners' Equity For the Year Ended December 31, 20x1 As you were reviewing the financiat statements with Chris, you discovered that during 20x1, Chris decided that there was excess cash in the business and that it could be placed in higher yield opportunities. Having read about Stablecoin and its related yield, Chris decided that Beamer Bir would purchase USDT. They plan on selling any remaining USDT within 12 months of purchase. None of the USDT transactions below were recorded, but now need to be included in the financial statements. REQUIRED: 1. Record the following journal entries and post them to their respective t-accounts: During the year, Chris participated in the following activities in addition to those reflected in the financial statements provided above: a) Beamer Biz, Inc, purchased \$50,000 USDT at S1/USDT on July 1,201. b) Beamer Biz, Inc, purchased an additional S25,000 USDT at S1/USDT on September 30. 201. c) Beamer Biz, Ine, decided to sell \$18,750 USDT at \$1USDT on December 31,201 d) Interest is paid monthly at an annual rate of 12% (paid last day of cach month). The interest is paid in USDT and is kept in USDT. Interest needs to be recorded on a monthly basis." c) Calculate necessary tax expense that will be paid on these holdings as of December 31th, 201. This tax will be paid in 202. Prepare: Journal entries and T-accounts Prepare: Updated Financial Statements for 20X1: a) Income statement b) Statement of retained carnings -) Balance sheet Stablecoin Case Chris's Beamer Biz, Inc., Year 1 - 20X1 Chris opened a Beamer business on January 1, 20X1. The tax rate is 30% and Chris will pay 201 taxes in 202. The initial financial statements for this business are presented below. Chris's Baamar Blz. Ine d) Prepare a letter to your client Prepare a one-page well-written business memo to Chris explaining any risks associated with their Stablecoin holdings and how their Stablecoin holdings needs to be treated from an accounting perspective (i.e., their financial statements need to be adjusted to reflect the transactions related to their Stablecoin holdings). Appendix Table A-calculation of monthly interest income and month end balances of USDT *Monthly interest is calculated by taking the Stablecoin prior month balance and multiplying it by the interest rate and then dividing by 12 (Quantity of Stable coin * interest rate / 12 months)
