prepare the financial statements for the year end of December 31, 2023. income stmt and changes in stockholders equity

Consider too the additional isformation below for the year 2023. Unless indicated otherwise (see items 4 and 7 ), this information is nos reflected in the partial trial balance above.All of the income amounts are stated ce a before-tax basis. 1. In August 2023 , Elisabeth extinguished 8% bonds payable having a book value of $719,280. Elisabeth padd the irvestors $785,610 to retire these bonds. 2. In March 2023, Elisabeth sold a warehouse it no longer neoded. Elisabeth sold the building for $506,430. Elisabeth's book value for the building at the time of sale was $392,890. 3. In 2019, Elisabeth purchasod boeds issued by MEM Co., which it cootiaues to hold as an available-for-sale investment. The fair value of Elisubeth's investment increased in 2023, froen $331,740 to $495,060. Nose - The 598,170 Net unecalized loss on MEM bonds (1/1/23) in the partial trial balance above relates to this item and, of course, is stated net of income taxes. 4. One of the revenue contracts Elisabeth entered into during 2023 requires closer inspection. In October 2023, Elisabeth agreed to deliver a sizable onder of fabrics to a customer over the next few months. The customer paid the full contract price of $126,930 in advance on the October 16, 2023 contract date. Elisabeth recorded the eollection in advance as sales revenue. The company has determined the following performance obligations and standalone values for this contract: Elisabeth completed delivery of Performance Obligation =1 during December 2023, and it expects to complete delivery of Performance Obligation 22 in Fetruary 2024. Consider any adjustment needed to the existing Sales Revense balance in the presentation of this account in the company's 2023 financial statements. 5. In January 2023, Hliabeth shifed its business strategy, resulting in the September 2023 sale of a componeat of the company considered a separate major line of business. The sale produced a gain on disponal of $159,360. The operations of the component, prior to the sale is Sepiember, produced a loss of $82,510. 6. In preparing its 2023 financial statements, Elisabeth determined that it mest write dowe certain of its patent assets by $46,980 7. The year-end Common Stock and Additional Paid-in Capital balances in the partial trial balance above include the effects of a stock issuance by Elisabeth during 2023. Elisabeth's issunace of common shares in April 2023 added $19,000 to the Common Siock account and $124,000 to the Additional Paid-in Capital account. 8. In July 2023, a severe storm and flooding caused significant damage to a company warchouve and the inventory it was itoring. Elisabeth suffered a loss, net of insurance proceeds, of \$61,080. Elisabeth had not experienced any damage from weather-related events ith the past. Assume the above amounts are material. Also, assume the income tax rate applicable to" all iacome items is 30%. Finally, note that Elissbeth uses the multiple-sicp format for the reporting of net income items and the one-income statement approach for the display of other comprehenaive income items: - Instructions - Prepare the finascial statements for the year ended Decenber 31,2023 to show the proper reporting of Elisabeth's: (a) income and 12.0> 2 (b) changes in stockbolders' equity, 3,0> Prepare these statements in good form, according to GAAP requirements. Refer to models of the financial statements in the textbook (pages 3-1 to 321 ), the practice problems and the class notes and examples. Please observe the following checklist of instructions as you complete this assignment: - Prepare your solutions for parts (a) and (b) using Excel Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your financial statements to the neturest dollar. Give careful attention to your formatting of information. Formatting includes effective presentation of information, correct spelling and capitalization, and proper wec of dollar signs, commas, asd underseoring. Refer to examples in the text for gudance. b This assignment is an infividual one. The paper you submit for grading should reflect your own thoughts and insights. You are free, though, to discuss the assignment with your classmates. In this context, discres means verbal communication only. Any capturing or sharing of iaformation in any format (written, electronic, recorded, etc) is a violation of the ASU Academic Integrity Code. Inclode the following identifying information in the upper left corner of the first sheet in