Required information The following information applies to the questions displayed below.) Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 (s in millions) 2021 2020 Assets Cash $39.8 $ 209.3 Accounts receivable 159. 107.0 Prepaid insurance 12.2 6.2 Inventory 248.8 116. Buildings and equipment 457.0 385.0 Less: Accumulated depreciation (192.0) (270.e) $ 724.0 $ 553.5 Liabilities Accounts payable $ 98. $ 112.5 Accrued liabilities 11.0 16.0 Notes payable 100. 8. Bonds payable 80.0 0.0 Shareholders' Equity 480. 400.0 Common stock 35.e 25.0 Retained earnings $ 724.e $ 553.5 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Shareholders' Equity Common stock Retained earnings 400.0 35.0 $ 724.0 400. 25.8 $ 553.5 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,800.e Expenses Cost of goods sold $2,100. Depreciation expense 55.0 Operating expenses 535.0 2,690.0 Net income $110.0 Additional information from the accounting records: a. During 2021, $212.0 million of equipment was purchased to replace $140,0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $100.0 million, it was necessary for Red to borrow $100.0 million from its bank. quired: epare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (.e. 5,500,000 should be entered as 5).) O CON Additional information from the accounting records: Hels a. During 2021. $212.0 million of equipment was purchased to replace $140.0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $100.0 million, it was necessary for Red to borrow $100.0 million from its bank. Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered a 5.5).) Cash (Statement of Cash Flows) Beg. Bal. Operating Activities: From customers 2,748.0 2.246.5 To suppliers Investing Activities: Sale of equipment 7.0 212.0 Purchase of equipment Financing Activities: Assuance of bonds issuance of notes 100.0 Payment of dividends 80.0 100.0 End. Bal. 376.5 WILLI UF Incorrect for the work you have completed so far. It does not indicate completion. Required information WWE Beg Bail From customers Accounts Receivable 1070 Beg Bail Prepaid Insurance 62 End. Bal 1070 End Sal 82 Beg Bal Inventory 1160 Beg Ba Buildings and Equipe 3850 End. Bai 116.0 End Bal 3850 Beg Bal Accumulated Depreciation 0.0 1330 Bag ON To suppies Accounts Payable 1125 End, Bal 133.0 End. Bal 1125 Seg. Bal Accrued Liabilities 0.0 50 Beg Bal Notes Puyable 00 End, Bal 5.0 End Bal Bonds Payable 00 Beg B Beg. Bal 00 2.000.00 Endal 28000 End B Cost of Opo Do 00 2.1000 blog Beg Ba 550 End Bal 133.0 End. Bai Beg Bal 1125 Accrued Liabilities 0.0 5.0 Beg. Bal Notes Payable 00 End. Bal 5.0 End. Bal Beg Bal Bonds Payable 0.0 Bales Beg Bal 00 End. Bal 2,800.0 End. Bal 2.8000 Beg Bal Cost of Goods Sold 0.0 2.100.0 > > Beg Bal Depreciation Expense 0.0 550 End. Bal 2,100.0 End, Bal 55.0 Beg Bal Operating Expenses 0.0 535.0 Beg. Bal Not Income Net Income income Summary 00 110.00 End. Bal 535.0 End. Bal 1100 Cammon stoc Bog. Bal Retained Earnings 0.0 25.03 Bog. Bal 000 40003 400.0 End, Bal 25.0 End Bal
