Question
Sandhill corporations trial balance at December 31, 2021 is presented below. Cash = $48000(debit) Account receivable = $51000(debit) Allowance for doubtful account = $2500(credit) Merchandise
Sandhill corporations trial balance at December 31, 2021 is presented below. Cash = $48000(debit) Account receivable = $51000(debit) Allowance for doubtful account = $2500(credit) Merchandise inventory = $22700(debit) Investment in associate = $ 85000(debit) Investment at FVTOCI-equity = $30000(debit) Land = 90000(debit) Building = 200000(debit) Accumulated depreciation- building = $40000(credit) Equipment = $40000(debit) Accumulated depreciation equipment = $15000 Accounts payable = $18775(credit) Income tax payable = $4500(credit) Bonds payable (6%, due January 1, 2026) = $126025(credit) Common shares, unlimited number of no-par value shares authorized, 100,000 issued = 100000(credit) Retained earnings = 110775(credit) Accumulated other comprehensive income = $5000(credit) Sales = $750000(credit) Cost of goods sold = $370000(debit) Operating expenses = $180000(debit) Interest revenue = $375(credit) Interest expense = $6250(debit) Income tax expense = $50000(debit) Total debit = 1172950 Total credit = 1172950 All transactions adjustments for 2021 have been recorded and reported in the trial balance except for the items described below. Jan. 7. Issued 1200 preferred shares for $25000. In total, 100000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred shares is convertible into five common shares. March.16. Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $28 per share. July.1. Purchased $100000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Sandhill purchased the bonds to earn interest. Aug.2. Sold the Osborne common shares for $29 per share. Aug.5. Invested $20000 in a money-market fund. Sep.25. 600 of the preferred shares issued on January 7 were converted into common shares. Oct.24. Cashed in the money-market fund, receiving $20000 plus $200 interest. Nov.30. Obtained a $50000 bank loan by issuing a three-year, 6% note payable. Sandhill is required to make equal blended payments of $1521 at the end of each month. The first payment was made on December 31. Note that at December 31, $15757 of the note payable is due within the next year. Dec.1. Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23, payable on January 15. Dec.31. Sandhill owns 40% of RES. RES earned $22800 and paid of $1800 in 2021.The fair value of the RES investment was $98000. Dec 31. Semi-annual interest is receivable on the Solar Inc. bonds on January 1,2022. The bonds were trading at 106 on December 31, 2021. Dec 31. The annual interest is due on the bond payable on January 1, 2022. The par value of the bonds is $130000, and the bonds were issued when the market interest rate was 7%. Dec 13. The fair value of the long-term investment at FVTOCI-equity was $28500. Ignore income tax calculation. Prepare the income statement, the statement of comprehensive income, the statement of changes in shareholders equity and balance sheet for sandhill.
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I was asked to prepare 4 financial statements: the income statement, the statement of comprehensive income, the statement of changes in shareholders equity and balance sheet for sandhill.
Thank you
Sandhill Corporation's trial balance at December 31, 2021, is presented below. All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below. Jan. 7 Issued 1,200 preferred shares for $25,000. In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred share is convertible into five common shares. Mar. 16 Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $28 per share. July 1 Purchased $100,000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1 . Sandhill purchased the bonds to earn interest. Aug. 2 Sold the Osborne common shares for $29 per share. 5 Invested $20,000 in a money-market fund. Sept. 25600 of the preferred shares issued on January 7 were converted into common shares. Oct. 24 Cashed in the money-market fund, receiving $20,000 plus $200 interest. Nov. 30 Obtained a $50,000 bank loan by issuing a three-year, 6% note payable. Sandhill is required to make equal blended All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below. Jan. 7 Issued 1,200 preferred shares for $25,000. In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred share is convertible into five common shares. Mar. 16 Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $28 per share. July 1 Purchased $100,000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1 . Sandhill purchased the bonds to earn interest. Aug. 2 Sold the Osborne common shares for $29 per share. 5 Invested $20,000 in a money-market fund. Sept. 25600 of the preferred shares issued on January 7 were converted into common shares. Oct. 24 Cashed in the money-market fund, receiving $20,000 plus $200 interest. Nov. 30 Obtained a $50,000 bank loan by issuing a three-year, 6% note payable. Sandhill is required to make equal blended payments of $1,521 at the end of each month. The first payment was made on December 31. Note that at December 31, $15,757 of the note payable is due within the next year. Dec. 1 Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23 , payable on January 15. 31 Sandhill owns 40% of RES. RES earned $22,800 and paid dividends of $1,800 in 2021 . The fair value of the RES investment was $98,000. 31 Semi-annual interest is receivable on the Solar Inc. bonds on January 1,2022 . The bonds were trading at 106 on December 31, 2021. 31 The annual interest is due on the bonds payable on January 1,2022 . The par value of the bonds is $130,000 and the bonds were issued when the market interest rate was 7%. 31 The fair value of the long-term investment at FVTOCl-equity was $28,500. Ignore income tax calculationStep by Step Solution
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