ENT 401 Chapter 8 Homework- Two Year Balance Sheet Creation-(20pts) Understanding Financial Statement Connections to the Balance Sheet Directions: Given the following information for Ambiance Solutions Corporation and prepare a balance sheet for 2020 and 2021 in the template provided. Note: You will be graded on appropriate account titles and locations within the balance sheet. All green shaded areas should be completed. Also, don't forget the balance sheet should balance!!! Note: You will also be graded on the correctness of the 2021 amounts since some of the accounts below are from the income or P\&L statement-you will need to calculate the changes to the balance sheet in the 2021 figures and explain fully these connections and the formulas you used in the questions following the Balance Sheet. Problem Information: The following 13 items should be accurately reflected in your work. (14pts) 1. Accounts receivable is $6,076 in 2020 and $5,624 in 2021. 2. The acquisition cost of plant, property and equipment is $20,580 in 2020 and $26,404 in 2021 . 3. Accumulated depreciation was $4,949 in 2020 . 4. Cash is $3,185 in 2020 and $3,128 in 2021. 5. Prepaid expenses are $804 in 2021. 6. Net profits were $920 in 2021. 7. Owners' investment was $12,226 in both 2020 and 2021. 8. Retained earnings were $3,356 in 2020 . 9. Inventory was $14,210 in 2020 and $16,503 in 2021. 10. Accounts payable were $4,410 in 2020 and $5,912 in 2021. 11. Long-term debt was $18,539 in 2020 and $21,525 in 2021. 12. Depreciation was $2,714 in 2021. 13. Current portion of long-term debt was $571 in 2020 and $861 in 2021. Using the Balance sheet answer the following questions that shows how the Profit and Loss Statement and the Balance Sheet link. 1. Name the two Profit and Loss statement accounts where the amount from the current period is needed to create the Balance Sheet of the same current period. ( 2 pts) 2. Name the two Balance Sheet Accounts that are calculated using the Profit and Loss information. (2pts) 3. Explain and show the formula you used to calculate the correct amount. (2pts) a. Balance Sheet Account \#1: Explain the Formula: ENT 401 Chapter 8 Homework- Two Year Balance Sheet Creation-(20pts) Understanding Financial Statement Connections to the Balance Sheet Directions: Given the following information for Ambiance Solutions Corporation and prepare a balance sheet for 2020 and 2021 in the template provided. Note: You will be graded on appropriate account titles and locations within the balance sheet. All green shaded areas should be completed. Also, don't forget the balance sheet should balance!!! Note: You will also be graded on the correctness of the 2021 amounts since some of the accounts below are from the income or P\&L statement-you will need to calculate the changes to the balance sheet in the 2021 figures and explain fully these connections and the formulas you used in the questions following the Balance Sheet. Problem Information: The following 13 items should be accurately reflected in your work. (14pts) 1. Accounts receivable is $6,076 in 2020 and $5,624 in 2021. 2. The acquisition cost of plant, property and equipment is $20,580 in 2020 and $26,404 in 2021 . 3. Accumulated depreciation was $4,949 in 2020 . 4. Cash is $3,185 in 2020 and $3,128 in 2021. 5. Prepaid expenses are $804 in 2021. 6. Net profits were $920 in 2021. 7. Owners' investment was $12,226 in both 2020 and 2021. 8. Retained earnings were $3,356 in 2020 . 9. Inventory was $14,210 in 2020 and $16,503 in 2021. 10. Accounts payable were $4,410 in 2020 and $5,912 in 2021. 11. Long-term debt was $18,539 in 2020 and $21,525 in 2021. 12. Depreciation was $2,714 in 2021. 13. Current portion of long-term debt was $571 in 2020 and $861 in 2021. Using the Balance sheet answer the following questions that shows how the Profit and Loss Statement and the Balance Sheet link. 1. Name the two Profit and Loss statement accounts where the amount from the current period is needed to create the Balance Sheet of the same current period. ( 2 pts) 2. Name the two Balance Sheet Accounts that are calculated using the Profit and Loss information. (2pts) 3. Explain and show the formula you used to calculate the correct amount. (2pts) a. Balance Sheet Account \#1: Explain the Formula