The following Is information for XYZ, Inc. (same one we used in our review) Results from 2021 Sales $ 385,000 All sales on credit Depreciation expense 16,000 Not Including depreciation on assets acquired in 2020 Amortization expense 3,000 Same for tax purposes Interest Expense 6,900 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 $53,400 with 1.11 Index 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: February 1 and August 1 payments on bonds payable 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 November 30 Discovered an asset retirement obligation on one piece of a building that will cost $50,000 in 20 years December 30, 2021 use of patent changed sufficiently to test for impairment - future cash flows equal to $6,500/yr for 4 years Dec 30, 2021 paid dividends equal to $.60 per share. Record accrued interest and depreciation on 2020 asset Other Information Tax rate Is 21% 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, . Create a statement of changes in stockholders equity for 2021 5. Create a balance sheet for the end of 2021. -694 6. Create a cash flow statement for 2021 using the Indirect method.A 13 14 cash 137,895 15 accounts receivable 30,000 16 inventory 46,600 17 prepaid insurance 2,700 18 PP&E 305,000 19 accum depreciation (120,640) 20 patent 83,000 21 leased equipment 22,800 22 leased real estate 123,434 23 total assets 580,788 24 25 accounts payable 39,500 26 wage payable 1,200 27 interest payable 5,039 28 taxes payable 7,416 29 note payable 99,000 30 deferred tax liability S 445 31 bonds payable S 107,489 32 lease liability - both S 143,926 33 S 404,015 34 35 CS S 10,000 36 APIC S 51,300 37 RE 119,472 38 TS (4,000) 39 S 176,772 40 S 580,788 41