Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Inventory 2 5 0 Deferred tax asset 1 5 0 Prepaid insurance 3 5 Accounts payable 4 0 Accumulated depreciation 6 , 0 0 0

Inventory250Deferred tax asset150Prepaid insurance35Accounts payable40Accumulated depreciation6,000Bonds payable (2030 maturity)7,000Note receivable (2022 maturity)40Equipment3,000Treasury stock5Accounts receivable40Premium on bonds payable100Preferred stock500Accumulated other comprehensive income (debit balance)25Goodwill200Allowance for doubtful accounts3Discount on notes receivable4Land50Trading securities20Held-to-maturity securities debt (2030 maturity)200Security FV adjustment trading (credit balance)3Security FV adjustment AFS (debit balance)10Pension liability350Additional paid-in capital5,000Cash and cash equivalents600Available for sale securities debt (2025 maturity)50Common stock30Factories15,000Accrued expenses and payables70
Bonus Opportunity (due 220)
Part I: Classified balance sheet
Use the following post-closing balance information at 1231?20 to create a professional balance sheet. All amounts listed in thousands.
\table[[Inventory,250,Deferred tax asset,150],[Prepaid insurance,35,Accounts payable,40],[Accumulated depreciation,6,000,Bonds payable (2030 maturity),7,000],[Note receivable (2022 maturity),40,Equipment,3,000],[Treasury stock,5,Accounts receivable,40],[Premium on bonds payable,100,Preferred stock,500],[\table[[Accumulated other comprehensive],[income (debit balance)]],25,Goodwill,200],[Allowance for doubtful accounts,3,Discount on notes receivable,4],[\table[[Security FV adjustment - AFS (debit],[balance)]],10,Pension liability,350],[Additional paid-in capital,5,000,Cash and cash equivalents,600],[\table[[Available for sale securities - debt],[(2025 maturity)]],50,Common stock,30],[Factories,15,000,Accrued expenses and payables,70]]
10% of the bonds will come due 71?21.5% of the premium will expire with their maturity.
10% of the equipment account is no longer used in operations and is being held idle. 5% of the accumulated depreciation is associated with this idle equipment.
5% of the cash and cash equivalents are legally-restricted in accordance with agreements tied to the long-term bonds payable.
Only 70% of the prepaid insurance contract will be used in 2021.
The inventory in the ledger is presented at cost, the net realizable value of the inventory is $190,000.
You must calculate retained earnings from the information given.
Part II: Multistep income statement
Use the following income-related items to crtate a multistep income statement for 2020. Assume a 20% tax rate (all amounts listed in thousands and pretax).
\table[[Cost of goods sold,700,\table[[Impairment of patent used in],[continuing operations]],170],[Dividend revenue,70,\table[[Selling, general and administrative],[expenses]],650],[Sales revenue,3,250,Interest expense,100],[Unrealized gain on trading securities,40,Research and development,150],[Depreciation and amortization,350,Restructuring costs,200]]
In addition, the following information is available regarding a division the company decided to discontinue (all amounts in thousands).
\table[[Book value of assets,$5,100,Book value of liabilities,$2,700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington

9th Edition

0070434360, 978-0070434363

More Books

Students also viewed these Accounting questions

Question

How many applicants are you interviewing?

Answered: 1 week ago

Question

Is Owner, Capital the same as common stock?

Answered: 1 week ago