create an income statement and a balance sheet for Smyth Corporation by using all the information on this page as well as the additional information listed. please show your work.

Smyth Corporation had the following balances at 12/31/x1: $ 2,200,000 3,750,000 5,500,000 2,600,000 5,450,000 4,510,000 90,000 7,000 21,000 7,000,000 5,000,000 1,000,000 2,000 370,000 19,000,000 10,900,000 4,700,000 1,900,000 CASH INVESTMENTS-TRADING ACCOUNTS RECEIVABLE (NET) INVENTORIES PROPERTY, PLANT,& EQUIP (NET) ACCOUNTS PAYABLE INTEREST PAYABLE ACCRUED VACATION PAY LIABILITY FOR PRODUCT WARRANTIES NOTES PAYABLE (long term) BONDS PAYABLE COMMON STOCK COMMON STOCK DIVIDENDS DISTRIBUTABLE RETAINED EARNINGS (1/1/x1) SALES COST OF GOODS SOLD OPERATING EXPENSES INTEREST EXPENSE Additional information. No adjustments have been made for any of the additional information. No reversing entries were made at 1/1/x1. (Hints!!! Do not change "Cash".) Financial statements are not issued until March of x2.) Smyth has a policy that allows employees 8 vacation days annually. The vacation days vest after an employee has been employed for six months. Smyth has a workforce of 20 employees each of whom has been with the company for at least three years. The average weekly salary is $1,000 (assume a five day work week). During the year employees took vacation hours totaling 112 days. The bookkeeper debited Wage Expense when the employees were paid for these days. (Ignore payroll taxes Sales include state sales tax at 4%. The bookkeeper debits Sales Tax Expense when sales taxes are paid to the state. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at 1/1/x1 was zero. Warranty costs are estimated at 1.6% of selling price. Actual warranty costs incurred during the year totaled $245,000. The bookkeeper debits warranty expense as these costs are incurred. The corporate tax rate is 40%. The company president receives a bonus based upon 10 % of net income. $1,000,000 of the bonds mature 6/30/x2. The minutes of the last board meeting state that the company plans to refinance the bonds on a long-term basis when they mature. You have determined that the company has no commitments from any lender to take care of these bonds. $1,000,000 of the bonds matured 1/31/x2. They were extinguished by issuing common stock. (Today's date is 2/1/x2). Smyth issued a2 year, $90,000, noninterest bearing note on 12/31/x1 for the purchase of a machine. The a. h C. d. g. market rate of interest is 10%. Cash dividends of $15,000 were declared on 12/15/x1 to be paid to stockholders of record on 1/ 15/x2 to be paid 1/31/x2 The company is suing a competitor for patent infringement. The attorneys believe that Smyth will win the law suit. The settlement may be for as much as $90,000. The attorneys believe Smyth will probably i. j receive $40,000. company is being sued by a customer who was hurt while visiting the corporate office. The attorneys believe that Smith may lose as much as $100,000, but that the customer will probably settle for $30,000. k Required: 1 Prepare a balance sheet and income statement for Smyth Company. Show calculations related to the above additional information. Smyth Corporation had the following balances at 12/31/x1: $2,200,000 3,750,000 5,500,000 2,600,000 5,450,000 4,510,000 90,000 7,000 21,000 7,000,000 5,000,000 1,000,000 CASH INVESTMENTS-TRADING ACCOUNTS RECEIVABLE (NET) INVENTORIES PROPERTY, PLANT, & EQUIP (NET) ACCOUNTS PAYABLE INTEREST PAYABLE ACCRUED VACATION PAY LIABILITY FOR PRODUCT WARRANTIES NOTES PAYABLE (long term) BONDS PAYABLE COMMON STOCK COMMON STOCK DIVIDENDS DISTRIBUTABLE 2,000 RETAINED EARNINGS (1/1/x1) SALES COST OF GOODS SOLD OPERATING EXPENSES INTEREST EXPENSE 370,000 19,000,000 10,900,000 4,700,000 1,900,000 Additional information. No adjustments have been made for any of the additional information. were made at 1/1/x1. (Hints!!! Do not change "Cash".) Financial statements are not issued until March of x2.) No reversing entries Smyth has a policy that allows employees 8 vacation days annually. The vacation days vest after an employee has been employed for six months. Smyth has a workforce of 20 employees each of whom has been with the company for at least three years. The average weekly salary is $1,000 (assume a fixe day work weck). During the year employees took vacation hours totaling 112 days. The bookkeeper debited Wage Expense when the employees were paid for these days. (Ignore payroll taxes Sales include state sales tax at 4 %. The bookkeeper debits Sales Tax Expense when sales taxxes are paid to the state. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at 1/1/x1 was zero. Warranty costs are estimated at 1.6 % of selling price. Actual warranty costs incurred during the year totaled $245,000. The bookkeeper debits warranty expense as these costs are incurred The corporate tax rate is 40%% The company president receives a bonus based upon 10 % of net income. $1,000,000 of the bonds mature 6/30/x2. The minutes of the last board meeting state that the company plans to refinance the bonds on a long-term basis when they mature. You have determined that the company has no commitments from any lender to take care of these bonds $1,000,000 of the bonds matured 1/31/x2. They were extinguished by issuing common stock (Today's b. c. d f date is 2/1/x2). Smyth issued a 2 year, $90,000, noninterest bearing note on 12/31/x1 for the market rate of interest is 10% Cash dividends of $15,000 were declared on 12/15/x1 to be paid to stockholders of record on 1/15/x2 to be paid 1/31/x2 The company is suing a competitor for patent infringement. The attomeys believe that Smyth will win the law suit. The settlement may be for as much as $90,000. The attorneys believe Smyth will probably receive $40,000 The company is being sued by a customer who was hurt while visiting the corporate office. The attorneys believe that Smith may lose as much as $100,000, but that the customer will probably settle for $30,000 purchase of a machine. The k Required: Prepare a balance sheet and income statement for Smyth Company. above additional information Show calculations related to the Smyth Corporation had the following balances at 12/31/x1: $ 2,200,000 3,750,000 5,500,000 2,600,000 5,450,000 4,510,000 90,000 7,000 21,000 7,000,000 5,000,000 1,000,000 2,000 370,000 19,000,000 10,900,000 4,700,000 1,900,000 CASH INVESTMENTS-TRADING ACCOUNTS RECEIVABLE (NET) INVENTORIES PROPERTY, PLANT,& EQUIP (NET) ACCOUNTS PAYABLE INTEREST PAYABLE ACCRUED VACATION PAY LIABILITY FOR PRODUCT WARRANTIES NOTES PAYABLE (long term) BONDS PAYABLE COMMON STOCK COMMON STOCK DIVIDENDS DISTRIBUTABLE RETAINED EARNINGS (1/1/x1) SALES COST OF GOODS SOLD OPERATING EXPENSES INTEREST EXPENSE Additional information. No adjustments have been made for any of the additional information. No reversing entries were made at 1/1/x1. (Hints!!! Do not change "Cash".) Financial statements are not issued until March of x2.) Smyth has a policy that allows employees 8 vacation days annually. The vacation days vest after an employee has been employed for six months. Smyth has a workforce of 20 employees each of whom has been with the company for at least three years. The average weekly salary is $1,000 (assume a five day work week). During the year employees took vacation hours totaling 112 days. The bookkeeper debited Wage Expense when the employees were paid for these days. (Ignore payroll taxes Sales include state sales tax at 4%. The bookkeeper debits Sales Tax Expense when sales taxes are paid to the state. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at 1/1/x1 was zero. Warranty costs are estimated at 1.6% of selling price. Actual warranty costs incurred during the year totaled $245,000. The bookkeeper debits warranty expense as these costs are incurred. The corporate tax rate is 40%. The company president receives a bonus based upon 10 % of net income. $1,000,000 of the bonds mature 6/30/x2. The minutes of the last board meeting state that the company plans to refinance the bonds on a long-term basis when they mature. You have determined that the company has no commitments from any lender to take care of these bonds. $1,000,000 of the bonds matured 1/31/x2. They were extinguished by issuing common stock. (Today's date is 2/1/x2). Smyth issued a2 year, $90,000, noninterest bearing note on 12/31/x1 for the purchase of a machine. The a. h C. d. g. market rate of interest is 10%. Cash dividends of $15,000 were declared on 12/15/x1 to be paid to stockholders of record on 1/ 15/x2 to be paid 1/31/x2 The company is suing a competitor for patent infringement. The attorneys believe that Smyth will win the law suit. The settlement may be for as much as $90,000. The attorneys believe Smyth will probably i. j receive $40,000. company is being sued by a customer who was hurt while visiting the corporate office. The attorneys believe that Smith may lose as much as $100,000, but that the customer will probably settle for $30,000. k Required: 1 Prepare a balance sheet and income statement for Smyth Company. Show calculations related to the above additional information. Smyth Corporation had the following balances at 12/31/x1: $2,200,000 3,750,000 5,500,000 2,600,000 5,450,000 4,510,000 90,000 7,000 21,000 7,000,000 5,000,000 1,000,000 CASH INVESTMENTS-TRADING ACCOUNTS RECEIVABLE (NET) INVENTORIES PROPERTY, PLANT, & EQUIP (NET) ACCOUNTS PAYABLE INTEREST PAYABLE ACCRUED VACATION PAY LIABILITY FOR PRODUCT WARRANTIES NOTES PAYABLE (long term) BONDS PAYABLE COMMON STOCK COMMON STOCK DIVIDENDS DISTRIBUTABLE 2,000 RETAINED EARNINGS (1/1/x1) SALES COST OF GOODS SOLD OPERATING EXPENSES INTEREST EXPENSE 370,000 19,000,000 10,900,000 4,700,000 1,900,000 Additional information. No adjustments have been made for any of the additional information. were made at 1/1/x1. (Hints!!! Do not change "Cash".) Financial statements are not issued until March of x2.) No reversing entries Smyth has a policy that allows employees 8 vacation days annually. The vacation days vest after an employee has been employed for six months. Smyth has a workforce of 20 employees each of whom has been with the company for at least three years. The average weekly salary is $1,000 (assume a fixe day work weck). During the year employees took vacation hours totaling 112 days. The bookkeeper debited Wage Expense when the employees were paid for these days. (Ignore payroll taxes Sales include state sales tax at 4 %. The bookkeeper debits Sales Tax Expense when sales taxxes are paid to the state. At year end, sales tax of $21,000 is due to the state. Sales Tax Payable at 1/1/x1 was zero. Warranty costs are estimated at 1.6 % of selling price. Actual warranty costs incurred during the year totaled $245,000. The bookkeeper debits warranty expense as these costs are incurred The corporate tax rate is 40%% The company president receives a bonus based upon 10 % of net income. $1,000,000 of the bonds mature 6/30/x2. The minutes of the last board meeting state that the company plans to refinance the bonds on a long-term basis when they mature. You have determined that the company has no commitments from any lender to take care of these bonds $1,000,000 of the bonds matured 1/31/x2. They were extinguished by issuing common stock (Today's b. c. d f date is 2/1/x2). Smyth issued a 2 year, $90,000, noninterest bearing note on 12/31/x1 for the market rate of interest is 10% Cash dividends of $15,000 were declared on 12/15/x1 to be paid to stockholders of record on 1/15/x2 to be paid 1/31/x2 The company is suing a competitor for patent infringement. The attomeys believe that Smyth will win the law suit. The settlement may be for as much as $90,000. The attorneys believe Smyth will probably receive $40,000 The company is being sued by a customer who was hurt while visiting the corporate office. The attorneys believe that Smith may lose as much as $100,000, but that the customer will probably settle for $30,000 purchase of a machine. The k Required: Prepare a balance sheet and income statement for Smyth Company. above additional information Show calculations related to the