Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's
The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash Accounts receivable $ 114 $ 195 86 204 Investment revenue receivable Inventory Prepaid insurance Long-term investment Land 12 9 213 205 10 18 172 130 207 155 Buildings and equipment 424 410 Less: Accumulated depreciation. (99) (130) Patent 33 37 $1,281 $1,124 Liabilities Accounts payable Salaries payable $ 55 $ 75 12 21 Interest payable (bonds) 14 9 Income tax payable 17 19 Deferred tax liability 21 13 Notes payable 26 Lease liability 87 Bonds payable 220 285 Less: Discount on bonds (27) (30) Shareholders' Equity Common stock 445 415 Paid-in capital-excess of par 105 90 Preferred stock 80 Retained earnings 240 227 Less: Treasury stock (14) $1,281 $1,124 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 (5 in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense $460 16 3 $479 185 78
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started