FINANCIAL STATEMENT PROJECT #5

Below is the trial balance of Saturn Corporation on December 31, 2019. The accounts are listed in alphabetical order and all accounts have normal balances.

Account Title:

Balance: Balance:

Accounts Payable = 1660 Interest Expense = 560

Accounts Receivable = 2580 Interest Payable = 80

Accum. Amort. - Copyright = 420 Interest Receivable = 10

Accum. Amort. - Patent = 390 Interest Revenue = 90

Accum. Depl. - Gold Mine = 4300 Land = 5000

Accum. Depr. - Bldngs. = 3600 LongTerm Investments in Bonds=4400

Accum. Depr. - Equip. = 1320 Longterm investment subsidiary=12600

Adjustment to Market (debit balance) = 260 Loss of Sale of AFS Sec.=260

Administrative Expenses = 7800 Marketable securities = 2840

Allowance for Bad Debts = 500 Merchandise Inventory=1390

APIC-Common = 2200 Mortgage note payable(30yr)=18000

APIC-Preferred = 1400 Notes Receivable(short-term)=1200

APIC-Treasury = 300 Patent = 1260

Bonds Payable (15 year)= 22500 Preferred Stock = 5000

Buildings = 32500 Prepaid insurance = 990

Cash= 7120 Rental Revenue = 250

Cash Dividends Declared= 700 Retained Earnings = 8290

Common Stock = 12000 Salaries Payable = 560

Common Stock Dividend Distributable = 900 Sales = 53800

Copyright = 880 Sales Discounts = 820

Cost of Goods sold = 26200 Sales Returns & Allowances = 1460

Discount on Bonds Payable = 1400 Selling Expense = 12700

Dividends revenue = 60 short term notes payable = 950

Dividends Payable = 250 SIT Payable = 160

Equipment = 6600 Stock Dividends Declared = 400

FICA Taxes Payable = 140 Subsidiary Income = 1180

FIT Payable = 330 Supplies = 610

FUTA Taxes Payable = 20 SUTA Taxes Payable = 60

Gain on Disposal of Plant Assets = 120 Treasury Stock = 950

Gold Mine = 7100 Unrealized gain on Valuation of MS(debt)=440

Income Tax Expense = 1080 Unrealized loss valuation of MS(equity)=180

Income Tax Payable = 280 Unearned Rental Revenue = 300

REQUIRED:

Prepare the financial statements for the year for Saturn Corporation--amulti-stepincome statement, a statement ofretained earningsand aclassifiedbalance sheet.

What is different for this project compared to Project #4?

1. New Accounts:
2. Chapter 10: Bonds Payable is a long-term liability account
3. Premium on Bonds Payable and Discount on Bonds Payable are anadjunctandcontraaccount TO the Bonds Payable account
4. Mortgages Payable is a long-term liability account
5. Chapter 12: Marketable Securities is a current asset.
6. Adjustment to Market accounts are either anadjunct(debit balance) OR acontra(credit balance) to the Marketable Securities account.
7. Losses and Gains on Sales of investment assets are realized gains and losses on the income statement Unrealized Losses and Gains on investment assets are on the income statement if the investments are trading securities and are on the stockholders' equity section of the balance sheet if the investments are available for sale securities (as either a contra or adjunct account to the total of paid in capital and retained earnings)
8. Long-Term Investments in Bonds are long-term investments
9. Long-Term Investments in Subsidiary Company (under the equity method) are long-term investments Subsidiary Income (our share of subsidiary net income under the equity method) is on the income statement
10. Dividend Revenue is on the income statement
11. Classified Balance Sheet:
12. We will now have FOUR asset categories: current, plant, intangible, and long-term investments