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The following is information for ABC a publicly traded company Condensed Balance Sheet at end of 2 0 2 1 ( amounts in thousands )

The following is information for ABC a publicly traded company Condensed
Balance Sheet at end of 2021(amounts in thousands) Income Statement for 2021 Statement of Comprehensive Income
Current Assets 2021
Cash 4,650 $ Sales $ 265,320 Net Income 48,967 $ 489672323
Accounts Receivable 18,260 $ Cost of Goods Sold $ 148,290 Other Comprehensive Income
Inventory $ 21,275 Gross Profit $ 117,030 Unrealized Gain on
Prepaid insurance 5,700 $ 57001900 AFS Debt Securities 158 $
Total Current Assets 49,885 $ Wages Expense $ 23,450 Income Tax Effect (33) $
Property, Plant and Equipment $ 311,000 Depreciation Expense $ 15,22015220+683 Total Other Comprehensive Inc $ 125
Accumulated Depreciation (103,500) $ 103500+1708Amortization Expense $ 1,500
Patent 36,000 $ Insurance Expense $ 767767+1900 Comprehensive Income 49,092 $ 491252323
AFS Debt Securities 2,100 $ Interest Expense $ 10,150
Total Assets 295,485 $ Other Expense $ 3,960
Current Liabilities Total Expenses $ 55,047
Accounts Payable 25,212 $ reduce taxesIncome before Taxes $ 61,983619832583
Interest Payable 650 $ Income Tax Expense $ 13,01613016(2583 x .21)=542
Wages Payable 1,085 $ Net Income $ 48,967489672583+542
Unearned Revenue 1,600 $
Total Current Liabilities 28,547 $ Earnings Per Share $ 4.90489672583+542/10000
Note Payable 114,000 $
Bond Payable in 2022 $ 30,000 Statement of Changes in Stockholders Equity 2021
Equity Common Stock ($1 par, 10,000 shares is $ 10,000 CS APIC RE AOCI
APIC 20,800 $ Beginning 10,000 $ $ 20,800 $ 47,468 $ (422)
Retained Earnings 92,435 $ 924353608Total OCI 125 $
Accumulated Other Comprehensive Los $ (297) Net Income $ 48,967489672323+488
Liabilities and Equity $ 295,485 Dividends $ (4,000)
Ending Balance 10,000 $ $ 20,800 $ 92,435 $ (297)
Results for 2022
Sales $ 281,800 All sales on credit
Inventory Purchases on credit =191,400 and ending inventory $56200(you calculate COGS)
Depreciation expense 16,000 $ not including assets sold, bought or found
Patent purchased in 2018 and determined to have remaining useful life of 10 years in 2022
Wages Expense 27,450 $ Paid in cash 2,194 $ additional owed at end of 2022 this should be the amount in the payable
Insurance policy indicates that $5,700 was paid in May 2021 for 24 month coverage starting May 12021.
During 2022 found an asset purchased and recorded in 2019 that had not been depreciated cost 6,830 no salvage 10 year useful life (an error)
Sold AFS Debt Securities that cost 400 for 390 in cash ($7 loss in AOCI recorded previously)
Sold equipment that cost 3,000 with accumulated depreciation of 2,590 for $300 in cash.
Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1,2021(first payment due January 1,2022)
10 year useful life and no salvage
Collections on A/R =278,320
Payments on A/P =176,500 all accounts payable deal with inventory
All service agreements sold to customers in 2021 completed in 2022. New service agreements sold for $2460 in cash during 202240 percent of the services provided
during 2022
Bond terms interest only for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 2023
Note Payable 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2% per quarter)
Each note payment pays the interest since the last payment with any remaining amount going toward principle
Fair value of remaining AFS Debt Securities $1,400
Other Information
Tax rate is 21%(unlike 2021 income taxes have not been paid and need to be recorded)
Half year convention for depreciation
Required:
1. Show journal entries or T accounts for results of 2022 operations.
2. Create an income statement including taxes and required EPS disclosures for 2022.
3. Create a statement of comprehensive income for 2022
4. Create a statement of changes in stockholders equity for 2022
5. Create a balance sheet for the end of 2022.
6. Create a cash flow statement for 2022 using the indirect method.
7. Show any necessary disclosures for 2021 that would be needed if both 2021 and 2022 were to be reported

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