Sandy Fun, Inc. is a public company in the U.S. Financial reporting is based on U.S. GAAP. The attached excel spreadsheet provides balances of Sandy Funs general ledger accounts as of 1/1/18 and 12/31/18. The 12/31/18 balances represent the adjusted trial balance for fiscal year 2018; however, the accounts are listed in alphabetical order, rather than normal financial statement order.Based upon the balances provided and the additional information from the companys accounting information system, prepare ingood form, for fiscal year ended 12/31/18:

1. 1) Statement of Net Income and Comprehensive Income (This is a regular multiple step income statement combined with the statement of comprehensive income.) Reminder: Public companies are required to report EPS on the face of the income statement.

2. 2) Statement of Stockholders Equity

3. 3) Classified, comparative Balance Sheet

4. 4) Statement of Cash Flows, prepared by the Direct Method (Note: Use Spreadsheet Tool for preparing the statement of cash

   flows.) Be sure to generate the complete spreadsheet and the official Statement of CF.

5. 5) Reconciliation of Net Income to Net Cash Flows Provided by Operating Activities

6. 6) Assume Sandy Fun does NOT use the Income Summary account in the closing process. Journalize the closing entries that

   would be necessary at 12/31/18.

Additional Information from Sandy Funs accounting information system for fiscal year 2018:

All sales of inventory are on account.

• All purchases of inventory are on account.

• Accounts payable consists only of transactions related to the purchase of inventory.

• Sandy Fun chose early adoption of the new lease accounting standard (ASU 2016-02).

• All of Sandy Funs outstanding bonds are nonconvertible.

• Sandy Funs preferred stock is noncumulative and convertible. Each share of preferred stock is convertible into 1 share of common stock.

• Investment revenue includes Sandy Funs share, which is $6,000, of the net income of Shells Co., an investee company over which Sandy Fun does have significant influence.

• Treasury Bills were sold during 2018 with a resulting gain of $2,000. Sandy Fun classifies its investments in Treasury Bills as cash equivalents. (acceptable under current U.S. GAAP)

• Temporary (timing) differences between pretax accounting income and taxable income in 2018 caused the deferred income tax liability account to increase by $3,000.

• During 2018, equipment originally costing $70,000 that was one-half depreciated was destroyed in a hurricane. Some major components of the equipment were salvageable and were sold for $17,000.

• During 2018, Sandy Fun purchased preferred stock of Boardwalk Inc. as a long-term investment paying $25,000.

• In February of 2018, Sandy Fun declared and issued a small 4.88% common stock dividend (4,000 shares). The market price

  of Sandy Funs common stock was $7.50 per share on the date of declaration.

• On April 1, 2018, Sandy Fun reacquired 1,000 shares of its own common stock at a cost of $9,000, accounting for these

  reacquired shares as treasury stock using the cost method.

• In October of 2018, $60,000 of outstanding bonds payable were retired (paid off) at maturity.

• In October of 2018, Sandy Fun declared a cash dividend on outstanding common stock of $0.25 per share. Sandy Fun paid

  the dividend in December 2018. No dividends were declared or paid on preferred stock in 2018.

• On December 1, 2018, Sandy Fun issued at par for cash 1,500 shares of $50 par, 2%, noncumulative, convertible preferred

  stock.

• On 12/31/18, Sandy Fun signed a 10-year lease agreement with Sunny Leasing Co., to acquire the right to use a building.

  The present value of the lease payments at the inception of the lease was $80,000. Annual lease payments of $7,000 are required, with the first payment required on 12/31/18. The right of use asset will be amortized using the straight-line method over the lease term.

• On December 31, 2018, Sandy Fun acquired land at a cost of $46,000, by paying $23,000 in cash and issuing a 15%, 4-year, note payable for the remainder.

Sandy Fun, Inc.
	2018	2017
accounts payable	50,000	65,000
accounts receivable (net)	190,000	194,000
accumulated depreciation-- equip	97,000	120,000
accumulated other comprehensive income	15,000	15,000
bond interest expense	28,000
bond interest payable	8,000	4,000
bonds payable	200,000	260,000
cash and cash equivalents	109,750	81,000
common stock, $5 par	430,000	410,000
cost of goods sold	180,000
deferred income tax liability	11,000	8,000
depreciation expense	12,000
discount on bonds payable	22,000	25,000
equipment	330,000	400,000
gain on sale of Treasury bills (cash equivalent)	2,000
income tax expense	36,000
income taxes payable	12,000	14,000
insurance expense	7,000
inventory	205,000	200,000
investment revenue	11,000
investment revenue receivable	6,000	4,000
land	196,000	150,000
lease liability	73,000	0
long-term investments	156,000	125,000
loss on equipment damage	18,000
notes payable	23,000	0
paid in capital in excess of par	95,000	85,000
patent (net)	30,000	32,000
patent amortization expense	2,000
preferred stock, $50 par	75,000	0
prepaid insurance	4,000	8,000
retained earnings	175,750	227,000
right-of-use asset--building (net)	80,000	0
salaries expense	73,000
salaries payable	6,000	11,000
sales revenue	410,000
treasury stock	9,000	0