The following is information for ABC-a publicly traded company Balance Sheet at end of 2020 (amounts in thousands) Condensed Income Statement for 2020 Statement of Comprehensive Income Current Assets Cash $ 4,650 Sales $ 265,320 2020 Net Income $48,967 Accounts Receivable $ 18,260 Cost of Goods Sold $ 148,290 Inventory $ 21,275 Gross Profit $ 117,030 Prepaid insurance $ 5,700 Other Comprehensive Income Unrealized Gain on AFS Debt Securities $ 158 Total Current Assets $ 49,885 Wages Expense $ 23,450 Property, Plant and Equipment $ 311,000 Depreciation Expense $ 15,220 Income Tax Effect $ (33) Total Other Comprehensive Inc $ 125 Accumulated Depreciation $ (103,500) Amortization Expense $ 1,500 Patent AFS Debt Securities $ 36,000 Insurance Expense $ 767 Comprehensive Income $49,125 $ 2,100 Interest Expense $ 10,150 Total Assets $ 295,485 Other Expense $ 3,960 Current Liabilities Total Expenses $ 55,047 Accounts Payable $ 25,212 Income before Taxes $ 61,983 Interest Payable $ 650 Income Tax Expense $ 13,016 Wages Payable $ 1,085 Net Income $ 48,967 Unearned Revenue $ 1,600 Total Current Liabilities $ 28,547 Earnings Per Share $ 4.90 Note Payable $ 114,000 Bond Payable in 2022 $ 30,000 Equity Common Stock ($1 par, 10,000 shares i: $ 10,000 CS APIC $ 20,800 Beginning Statement of Changes in Stockholders Equity-2020 $ 10,000 $ 20,800 APIC Retained Earnings $ 92,435 Total OCI AOCI $ (422) $ 125 Accumulated Other Comprehensive Lo: $ (297) Net Income Liabilities and Equity $ 295,485 Dividends Ending Balance $ 10,000 $ 20,800 $ (297) Results for 2021 Sales $ 281,300 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 2021 Wages Expense $ 27,450 Paid in cash $ 2,194 additional owed at end of 2021 Insurance policy indicates that $5,700 was paid in May 2020 for 24 month coverage starting May 1 2020. During 2021 found an asset purchased and recorded in 2018 that had not been depreciated-cost 6,230 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 2,690 for $200 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 = 275,320 Payments on A/P = 176,500- all accounts payable deal with inventory All service agreements sold to customers in 2020 completed in 2021. New service agreements sold for $2460 in cash during 2021 - 40 percent of the services provided during 2021 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 2022 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 2020 income taxes have not been paid) Half year convention for depreciation Required: 1. Show journal entries or T accounts for results of 2021 operations. 2. Create an income statement including taxes and required EPS disclosures for 2021. 3. Create a statement of comprehensive income for 2021 4. Create a statement of changes in stockholders equity for 2021 5. Create a balance sheet for the end of 2021. 6. Create a cash flow statement for 2021 using the indirect method. 7. Show any necessary disclosures for 2020 that would be needed if both 2020 and 2021 were to be reported