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Results for 2 0 2 2 Sales $ 2 8 1 , 8 0 0 All sales on credit Inventory Purchases on credit = 1

Results for 2022
Sales
$281,800 All sales on credit
Inventory Purchases on credit =191,400 and ending inventory $56200(you calculate COGS)
Depreciation expense $ 16,000 not including assets sold, bought or found
Patent purchased in 2018 and determined to have remaining useful life of 10 years in 2022
Wages Expense $ $27,450 Paid in cash 2,194 additional owed at end of 2022- this should be the amount in the payable
Insurance policy indicates that $5,700 was paid in May 2021 for 24 month coverage starting May 12021.
During 2022 found an asset purchased and recorded in 2019 that had not been depreciated - cost 6,830 no salvage 10 year useful life (an error.
Sold AFS Debt Securities that cost 400 for 390 in cash ( $7 loss in AOCI recorded previously)
Sold equipment that cost 3,000 with accumulated depreciation of 2,590 for $300 in cash.
Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1,2021(first payment due January 1,2022 ;
10 year useful life and no salvage
Collections on AR=278,320
Payments on AP=176,500- all accounts payable deal with inventory
All service agreements sold to customers in 2021 completed in 2022. New service agreements sold for $2460 in cash during 2022-40 percent of the services provided
during 2022
Bond terms- interest onlv for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 202:
Note Payable -4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2% per quarter)
Each note payment pays the interest since the last payment with any remaining amount going toward principle
Fair value of remaining AS Debt Securities $1,400
Other Information
Tax rate is 21%(unlike 2021 income taxes have not been paid and need to be recorded)
Half year convention for depreciation
Required:
1. Show journal entries or T accounts for results of 2022 operations.
2. Create an income statement including taxes and required EPS disclosures for 2022.
3. Create a statement of comprehensive income for 2022
4. Create a statement of changes in stockholders equity for 2022
5. Create a balance sheet for the end of 2022.
6. Create a cash flow statement for 2022 using the indirect method.
7. Show any necessary disclosures for 2021 that would be needed if both 2021 and 2022 were to be reported
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