Required information

[The following information applies to the questions displayed below.] The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also.

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions)
	2021				2020
Assets
Cash	$	214			$	90
Accounts receivable		199				203
Investment revenue receivable		15				13
Inventory		214				209
Prepaid insurance		13				17
Long-term investment		156				125
Land		205				159
Buildings and equipment		459				409
Less: Accumulated depreciation		(106	)			(129	)
Patent		47				49
	$	1,416			$	1,145
Liabilities
Accounts payable	$	59			$	83
Salaries payable		15				20
Interest payable (bonds)		17				13
Income tax payable		21				23
Deferred tax liability		20				17
Notes payable		23				0
Lease liability		113				0
Bonds payable		224				284
Less: Discount on bonds		(23	)			(26	)
Shareholders Equity
Common stock		430				410
Paid-in capitalexcess of par		124				112
Preferred stock		84				0
Retained earnings		318				209
Less: Treasury stock		(9	)			0
	$	1,416			$	1,145

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions)
Revenues and gain:
Sales revenue	$	595
Investment revenue		38
Gain on sale of treasury bills		2		$	635
Expenses and loss:
Cost of goods sold		189
Salaries expense		82
Depreciation expense		12
Amortization expense		2
Insurance expense		16
Interest expense		37
Loss on sale of equipment		19
Income tax expense		45			402
Net income				$	233

Additional information from the accounting records:

1. Investment revenue includes Arduous Companys $6 million share of the net income of Demur Company, an equity method investee.
2. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
3. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million.
4. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million.
5. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment.
6. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller.
7. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $120 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021.
8. $60 million of bonds were retired at maturity.
9. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time.
10. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

rev: 05_08_2020_QC_CS-210569

Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)

Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (l.e., 10,000 should be entered as 10).) Cash Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Accounts Receivable Inventory Beg. Bal. Beg. Bal End. Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Beg. Bal. Beg. Bal. Long-term Investments Land Beg Bal. Beg. Bal End. Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Beg. Bal. Beg. Bal End. Bal. End. Bal Patent Accounts Payable Beg. Bal. Beg. Bal End. Bal. End. Bal. Salaries Payable Interest Payable Beg. Bal Beg. Bal End. Bal. End. Bal. Income Tax Payable Deferred Tax Liability Beg. Bal. Beg. Bal End. Bal. End. Bal Notes Payable Lease Liability Notes Payable Lease Liability Beg. Bal. Beg. Bal End. Bal End. Bal. Bonds Payable Discount on Bonds Beg. Bal. Beg. Bal End. Bal. End. Bal. Common Stock Paid-in Capital Beg. Bal. Beg Bal End. Bal End. Bal Preferred Stock Retained Earnings Beg. Bal. Beg. Bal End. Bal End. Bal. Treasury Stock Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Investment Revenue Gain on Sale of Treasury Bills Required information Investment Revenue Gain on Sale of Treasury Bills Beg. Bal Beg. Bal. End. Bal End. Bal Cost of Goods Sold Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Depreciation Expense Amortization Expense Beg. Bal Beg. Bal. End. Bal End. Bal. Insurance Expense Interest Expense Beg. Bal. Beg. Bal End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. End. Bal End. Bal. Net Income (Income Summary) Beg. Bal End. Bal. Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (l.e., 10,000 should be entered as 10).) Cash Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Accounts Receivable Inventory Beg. Bal. Beg. Bal End. Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Beg. Bal. Beg. Bal. Long-term Investments Land Beg Bal. Beg. Bal End. Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Beg. Bal. Beg. Bal End. Bal. End. Bal Patent Accounts Payable Beg. Bal. Beg. Bal End. Bal. End. Bal. Salaries Payable Interest Payable Beg. Bal Beg. Bal End. Bal. End. Bal. Income Tax Payable Deferred Tax Liability Beg. Bal. Beg. Bal End. Bal. End. Bal Notes Payable Lease Liability Notes Payable Lease Liability Beg. Bal. Beg. Bal End. Bal End. Bal. Bonds Payable Discount on Bonds Beg. Bal. Beg. Bal End. Bal. End. Bal. Common Stock Paid-in Capital Beg. Bal. Beg Bal End. Bal End. Bal Preferred Stock Retained Earnings Beg. Bal. Beg. Bal End. Bal End. Bal. Treasury Stock Sales Beg. Bal. Beg. Bal. End. Bal. End. Bal. Investment Revenue Gain on Sale of Treasury Bills Required information Investment Revenue Gain on Sale of Treasury Bills Beg. Bal Beg. Bal. End. Bal End. Bal Cost of Goods Sold Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Depreciation Expense Amortization Expense Beg. Bal Beg. Bal. End. Bal End. Bal. Insurance Expense Interest Expense Beg. Bal. Beg. Bal End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. End. Bal End. Bal. Net Income (Income Summary) Beg. Bal End. Bal