December 31, 2021 Account Title Debit Credit Cash $27,165 Accounts Receivable $58,341 Interest Receivable $2,850 Prepaid Insurance $16,000 Short-Term Investment - Daenerys Inc. $38,000 Short-Term Investments - Bonds $20,000 Valuation Allowance for Fair Value Adjustme $6,400 Inventory $110,000 Investment in Gregor Inc. Common shares $292,000 Long-Term Investment - Bond $50,000 Discount on Bonds $7,718 Property, Plant & Equipment $240,000 Accumulated Depreciation $50,000 Accounts Payable $65,000 Interest Payable $8,750 Unearned Revenue $5,200 Premium on Bonds Bonds Payable $6,930 Bank Loan $40,000 Common Shares $75,000 Preferred Shares $12,000 Retained Earnings $115,700 Interest Revenue $2,850 Revenue from Investment in Gregor Inc. $160,000 Unrealized Gain on Fair Value Adjustment $6,400 Income Tax Savings - Discontinued Operatio $4,410 Sales Revenue $690,000 Sales Discounts $8,000 Sales Returns and Allowances $10,000 Cost of Goods Sold $310,500 Depreciation Expense $25,000 Insurance Expense $2,000 Interest Expense $11,538 Loss from Discontinued Operations $14.700 Maintenance Expense $9,000 Professional Fees Expense $6,600 Rent Expense $38,000 Salaries Expense $75,000 Telephone Expense $4,000 Travel Expense $16,700 Income Tax Expense - Continuing Operations $102,874 Unrealized Loss on Fair Value Adjustment Total ############# Notes: The bank loan is payable over 8 years and $5,000 will be paid by December 31, 2022. The interest on this loan is 5% per annum Prepare a multistep income statement for the year ending December 31, 2021. Round answers to the nearest whole number. 0 Holister Electric Inc. 29 Marks Income Statement For the Year Ended December 31, 2021 Sales Revenue $690,000 Less: Sales Retuns & Allowance 10,000 Sales Discount 8,000 18.000 Net Sales 672,000 Cost of Goods Sold 310500 Gross Profit 361,500 $25,000 2,000 9,000 6,600 38,000 75,000 4,000 16.700 176.300 185,200 Operating Expenses Depreciation Expense Insurance Expense Maintenance Expense Professional Fees Expense Rent Expense Salaries Expense Telephone Expense Travel Expense Total Operating Expenses Income from Operations Other Income and Expenses Interest Expense Interest Revenue Revenue from Investment in Gre Unrealized Gain on Fair Value Ad Income before tax Income Tax Expense - Continuin Income from continuing operation Discontinued Operations Loss from Discontinued Operat Income Tax Savings - Discontin Net Income 11,538 2,850 160,000 6.400 167,712 342,9121 102,874 240,038 14,700 4.410 10.290 $229.748 402 Prepare a statement of retained earnings at December 31, 2021. Round answers to the nearest whole number. 403 Holister Electric Inc. 404 Statement of Retained Earnings 405 For the Year Ended December 31, 2021 406 407 408 409 410 411 Prepare a Classified Balance Sheet at December 31, 2021. Round answers to the nearest whole number. 412 Holister Electric Inc. 32 Marks 0 413 Balance Sheet 414 As at December 31, 2021 415 Assests 416 Current Assets 417 Cash $27,165 418 Accounts Receivable 58,341 419 Interest Receivable 2,850 420 Prepaid Insurance 16,000 421 Inventory 110,000 422 Short-Term Investment - Daenery 38,000 423 Short-Term Investments - Bonds 6,400 424 Total current assets 258.756 425 426 Long-term Assets 427 Long-Term Investment - Bond 428 Property, Plant & Equipment (Net 190,000 429 Total Assets 258,756 430 431 Liabilities 432 Current Liabilities 433 Accounts Payable 434 Interest Payable 435 Unearned Revenue 436 Bonds Payable 437 Bank Loan 438 Total Current Liabilities 439 440 441 442 443 444 445 Shareholder's Equity 446 Contributed Captial 447 Investment in Gregor Inc. Cl 448 Preferred Shares 449 Common Shares 450 Total contributed 451 Retained Earnings 452 Total Shareholder's Equity 453 Total Libilities & Sharehold 454 December 31, 2021 Account Title Debit Credit Cash $27,165 Accounts Receivable $58,341 Interest Receivable $2,850 Prepaid Insurance $16,000 Short-Term Investment - Daenerys Inc. $38,000 Short-Term Investments - Bonds $20,000 Valuation Allowance for Fair Value Adjustme $6,400 Inventory $110,000 Investment in Gregor Inc. Common shares $292,000 Long-Term Investment - Bond $50,000 Discount on Bonds $7,718 Property, Plant & Equipment $240,000 Accumulated Depreciation $50,000 Accounts Payable $65,000 Interest Payable $8,750 Unearned Revenue $5,200 Premium on Bonds Bonds Payable $6,930 Bank Loan $40,000 Common Shares $75,000 Preferred Shares $12,000 Retained Earnings $115,700 Interest Revenue $2,850 Revenue from Investment in Gregor Inc. $160,000 Unrealized Gain on Fair Value Adjustment $6,400 Income Tax Savings - Discontinued Operatio $4,410 Sales Revenue $690,000 Sales Discounts $8,000 Sales Returns and Allowances $10,000 Cost of Goods Sold $310,500 Depreciation Expense $25,000 Insurance Expense $2,000 Interest Expense $11,538 Loss from Discontinued Operations $14.700 Maintenance Expense $9,000 Professional Fees Expense $6,600 Rent Expense $38,000 Salaries Expense $75,000 Telephone Expense $4,000 Travel Expense $16,700 Income Tax Expense - Continuing Operations $102,874 Unrealized Loss on Fair Value Adjustment Total ############# Notes: The bank loan is payable over 8 years and $5,000 will be paid by December 31, 2022. The interest on this loan is 5% per annum Prepare a multistep income statement for the year ending December 31, 2021. Round answers to the nearest whole number. 0 Holister Electric Inc. 29 Marks Income Statement For the Year Ended December 31, 2021 Sales Revenue $690,000 Less: Sales Retuns & Allowance 10,000 Sales Discount 8,000 18.000 Net Sales 672,000 Cost of Goods Sold 310500 Gross Profit 361,500 $25,000 2,000 9,000 6,600 38,000 75,000 4,000 16.700 176.300 185,200 Operating Expenses Depreciation Expense Insurance Expense Maintenance Expense Professional Fees Expense Rent Expense Salaries Expense Telephone Expense Travel Expense Total Operating Expenses Income from Operations Other Income and Expenses Interest Expense Interest Revenue Revenue from Investment in Gre Unrealized Gain on Fair Value Ad Income before tax Income Tax Expense - Continuin Income from continuing operation Discontinued Operations Loss from Discontinued Operat Income Tax Savings - Discontin Net Income 11,538 2,850 160,000 6.400 167,712 342,9121 102,874 240,038 14,700 4.410 10.290 $229.748 402 Prepare a statement of retained earnings at December 31, 2021. Round answers to the nearest whole number. 403 Holister Electric Inc. 404 Statement of Retained Earnings 405 For the Year Ended December 31, 2021 406 407 408 409 410 411 Prepare a Classified Balance Sheet at December 31, 2021. Round answers to the nearest whole number. 412 Holister Electric Inc. 32 Marks 0 413 Balance Sheet 414 As at December 31, 2021 415 Assests 416 Current Assets 417 Cash $27,165 418 Accounts Receivable 58,341 419 Interest Receivable 2,850 420 Prepaid Insurance 16,000 421 Inventory 110,000 422 Short-Term Investment - Daenery 38,000 423 Short-Term Investments - Bonds 6,400 424 Total current assets 258.756 425 426 Long-term Assets 427 Long-Term Investment - Bond 428 Property, Plant & Equipment (Net 190,000 429 Total Assets 258,756 430 431 Liabilities 432 Current Liabilities 433 Accounts Payable 434 Interest Payable 435 Unearned Revenue 436 Bonds Payable 437 Bank Loan 438 Total Current Liabilities 439 440 441 442 443 444 445 Shareholder's Equity 446 Contributed Captial 447 Investment in Gregor Inc. Cl 448 Preferred Shares 449 Common Shares 450 Total contributed 451 Retained Earnings 452 Total Shareholder's Equity 453 Total Libilities & Sharehold 454