The following is information for XYZ, Inc.

Results from 2021

Sales

385,000$

All sales on credit

Depreciation expense

16,000$

Not including depreciation on assets acquired in 2017 and 2018

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 2021

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 2020 including the change in asset/liability

Transactions the accountant needs help with:

Remainder of the stock options vest/are earned on January 1

Mar 1, 2021 purchased 500 shares in the open market for $26 each

August 1, 2021 - Sold equipment that XYZ no longer needed for $400 in cash

The equipment had originally been purchased for 5000 at the beginning of 2013 and fully

depreciated last year

Nov 1, 2021 employees exercised their options to buy 100 shares from the 2018 option plan

The shares came out of treasury stock bought last year

Dec 30, 2021 paid dividends equal to $.60 per share.

Record accrued interest and depreciation on 2020 asset

Other Information

Tax rate is 21%

Average price of shares during 2021 is $27

Incremental borrowing rate 7%

No half year convention

Required:

1. Show journal entries or T accounts for results of 2021 operations.

2. Show journal entries or T accounts as needed for the transactions the accountant needs help with.

3. Create an income statement including taxes and required EPS disclosures 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.

Here is the balance sheet for the end of 2020 so you can do questions 1-6. Let me know if you need anything else.

Cash	33,100
AR	30,000
Inventory	56,000
Ppd Ins	2,700
PP&E	305,000
Accum Deprec	-120,640
Patent	33,000
Leased Asset	146,233
	485,393
AP	39,500
Wages Payable	1,200
Taxes Payable	10,426
Notes Payable	99,000
Interest Payable	2,800
Deferred Tax Liability	235
Lease Liability	143,926
	297,087
Common Stock	10,000
APIC	52,300
RE	130,006
Treasury Stock	-4000
	188,306
	485,393