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 $ $ 99 212 22 218 Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent 313 208 24 223 22 156 214 504 (115) 65 26 125 168 418 (138) 67 $ 1,217 $ 1,614 $ $ 101 68 24 26 30 29 23 149 29 22 32 26 0 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 233 293 (26) (23) 430 151 93 390 (9) $ 1,614 410 139 0 191 0 $ 1,217 $ 705 65 - 2 $ 772 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense Net income 198 91 12 2 25 46 21 54 449 $ 323 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $14 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $156 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Cash Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Accounts Receivable Inventory Bal. Beg. Bal Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Bal. Beg. Bal. Bal. End. Bal. Long-term Investments Land Bal. Beg. Bal Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Bal. Beg. Bal Bal. End. Bal. Patent Accounts Payable Bal. Beg. Bal Salaries Payable Interest Payable Bal. Beg. Bal Bal. End. Bal. Income Tax Payable Deferred Tax Liability Bal. Beg. Bal Bal. End. Bal. Notes Payable Lease Liability Bal. Beg. Bal Bal. End. Bal. Bonds Payable Discount on Bonds Bal. Beg. Bal Bal. End. Bal. Common Stock Paid-in Capital Bal. Beg. Bal Insurance Expense Interest Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Net Income (Income Summary) Beg. Bal. End. Bal. The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 $ $ 99 212 22 218 Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent 313 208 24 223 22 156 214 504 (115) 65 26 125 168 418 (138) 67 $ 1,217 $ 1,614 $ $ 101 68 24 26 30 29 23 149 29 22 32 26 0 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 233 293 (26) (23) 430 151 93 390 (9) $ 1,614 410 139 0 191 0 $ 1,217 $ 705 65 - 2 $ 772 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense Net income 198 91 12 2 25 46 21 54 449 $ 323 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $14 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $156 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2021. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Cash Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Accounts Receivable Inventory Bal. Beg. Bal Bal. End. Bal. Prepaid Insurance Investment Revenue Receivable Bal. Beg. Bal. Bal. End. Bal. Long-term Investments Land Bal. Beg. Bal Bal. End. Bal. Buildings and Equipment Accumulated Depreciation Bal. Beg. Bal Bal. End. Bal. Patent Accounts Payable Bal. Beg. Bal Salaries Payable Interest Payable Bal. Beg. Bal Bal. End. Bal. Income Tax Payable Deferred Tax Liability Bal. Beg. Bal Bal. End. Bal. Notes Payable Lease Liability Bal. Beg. Bal Bal. End. Bal. Bonds Payable Discount on Bonds Bal. Beg. Bal Bal. End. Bal. Common Stock Paid-in Capital Bal. Beg. Bal Insurance Expense Interest Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Income Tax Expense Loss on Sale of Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Net Income (Income Summary) Beg. Bal. End. Bal