The following is information for a publicly traded company Balance Sheet at end of 2015 Cash 4,000$ Accounts Receivable 25,000$ Inventory 30,000$ Prepaid insurance 5,700$ Property, Plant and Equipment 305,000$ Accumulated Depreciation (103,500)$ Patent 36,000$ Total Assets 302,200$ Accounts Payable 25,000$ Wages Payable 1,200$ Interest Payable 2,800$ Income Taxes Payable 1,600$ Note Payable 114,000$ Common Stock ($1 par, 10,000 shares issued) 10,000$ APIC 50,800$ Retained Earnings 96,800$ Liabilities and Equity 302,200$

Results from 2017 Sales 385,000$ All sales on credit Depreciation expense 16,000$ Not including depreciation on assets acquired in 2016 and 2017 Amortization expense 3,000$ Same for tax purposes Interest Expense 6,900$ Not considering convertible bonds and paid in cash Wages Expense 33,600$ Paid in cash Insurance expense 4,700$ Includes $2000 paid for life insurance premiums and expired insurance

Collections on A/R = 340,000 Payments on A/P = 239,500 - all accounts payable deal with inventory Paid income taxes payable in Jan 2017 Payment on Note payable = 20,000 Inventory Purchases on credit = 241,000 and ending inventory $46000 Payment of all accrued interest. Lease payments as called for in agreements from 2016

Transactions the accountant needs help with: Jan 1, 2017 1000 restricted stock issued with fair value of $25 Vests over 5 years on a quarterly basis - none forfeited Mar 1, 2017 purchased 800 shares in the open market for $26 each June 1, 2017 Employees representing 10% of the stock options granted forfeited their options August 1, 2017 - Sold equipment that XYZ no longer needed for $400 in cash The equipment had originally been purchased at the beginning 2010 and depreciated using the double declining method over a useful life of 10 years. Cost = 5,000 Nov 1, 2017 employees exercised their options to buy 100 shares from the 2016 option plan The shares came out of treasury stock Dec 30, 2017 paid dividends equal to $.60 per share on only unrestricted shares. Record accrued interest and depreciation on 2016 asset

Other Information Tax rate is 35% Average price of shares during 2017 is $27 Incremental borrowing rate 7% No half year convention

Required: 1. Show journal entries for results of 2017 operations. 2. Show journal entries as needed for the transactions the accountant needs help with. 3. Create an income statement including taxes and required EPS disclosures for 2017. 4. Create a statement of changes in stockholders equity for 2017 5. Create a balance sheet for the end of 2017. 6. Create a cash flow statement for 2017 using the indirect method.

2016 Ending amount:

Sales 280000 COGS 165000 Deprec 20139.99 Wages 26000 Insurance 5000 Lease exp 5000 Interest Exp 13093 Compensation Exp 750 45017.01 Tax Expense 16455.95 Net Income 28561.06 Basic EPS $ 1.94 Diluted EPS $ 1.50 Statement of Equity CS APIC RE TS Beginning 10000 50800 96800 0 Stock comp 750 Purchase of shares -6000 Sale of shares 500 2000 Stock dividend 4900 -4900 Cash Dividend -7350 Net Income 28561 14900 52050 113111.1 -4000 Balance Sheet Cash 230,650 Accounts Receivable $ 30,000 Inventory $ 56,000 Prepaid Ins $ 2,700 PP&E 305,000 Accum Deprec (119,500) Patent $ 33,000 Leased Asset 145,093 Total 682,943 Accounts Payable $ 39,500 Wages Payable $ 1,200 Taxes Payable $ 15,977 Note Payable 299,000 Interest Payable $ 6,800 Deferred Tax liability $ 479 Lease Liability 143,926 506,882 CS $ 14,900 APIC $ 52,050 RE 113,111 TS $ (4,000) 682,943 Net Income 28561.06 Depreciation/Amort 20139.99 Compensation Exp 750 Accounts Rec -5000 Inventory (26000) Prepaid 3000 Accounts Pay 14500 Taxes Pay 14377.12 Interest Payable 4000 Deferred tax liability 478.8378 54807 Payoff note payable (15000) Purchase Treasury stock (6000) Sale of Treasury stock 2500 New Convertible bonds 200000 Dividends (7350) 174150 Change in cash 228957 Beginning 4000 Ending Cash 232957

The following is information for

Results from 2017 Sales 385,000$ All sales on credit Depreciation expense 16,000$ Not including depreciation on assets acquired in 2016 and 2017 Amortization expense 3,000$ Same for tax purposes Interest Expense 6,900$ Not considering convertible bonds and paid in cash Wages Expense 33,600$ Paid in cash Insurance expense 4,700$ Includes $2000 paid for life insurance premiums and expired insurance

Collections on A/R = 340,000 Payments on A/P = 239,500 - all accounts payable deal with inventory Paid income taxes payable in Jan 2017 Payment on Note payable = 20,000 Inventory Purchases on credit = 241,000 and ending inventory $46000 Payment of all accrued interest. Lease payments as called for in agreements from 2016

Transactions the accountant needs help with: Jan 1, 2017 1000 restricted stock issued with fair value of $25 Vests over 5 years on a quarterly basis - none forfeited Mar 1, 2017 purchased 800 shares in the open market for $26 each June 1, 2017 Employees representing 10% of the stock options granted forfeited their options August 1, 2017 - Sold equipment that XYZ no longer needed for $400 in cash The equipment had originally been purchased at the beginning 2010 and depreciated using the double declining method over a useful life of 10 years. Cost = 5,000 Nov 1, 2017 employees exercised their options to buy 100 shares from the 2016 option plan The shares came out of treasury stock Dec 30, 2017 paid dividends equal to $.60 per share on only unrestricted shares. Record accrued interest and depreciation on 2016 asset

Other Information Tax rate is 35% Average price of shares during 2017 is $27 Incremental borrowing rate 7% No half year convention

Required: 1. Show journal entries for results of 2017 operations. 2. Show journal entries as needed for the transactions the accountant needs help with. 3. Create an income statement including taxes and required EPS disclosures for 2017. 4. Create a statement of changes in stockholders equity for 2017 5. Create a balance sheet for the end of 2017. 6. Create a cash flow statement for 2017 using the indirect method.