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You have been hired by Number Company as a staff accountant. Your first assignment is to produce financial statements for Alphabetical Company. You must
You have been hired by Number Company as a staff accountant. Your first assignment is to produce financial statements for Alphabetical Company. You must produce the income statement, statement of owners' equity and balance sheet for both years, and a statement of cash flows for only 20x2. Use the indirect method in the body of the statement of cash flows and disclose the direct method separtately. Additionally, please refer to the rubric attached to this assignment for additional grading components and information required in submission. Please note that the company: 1. Issued stock in 20X2, but did not in 20x1. 2. Paid its 20x1 tax liability in full in 20x2. Tax rate Deferred tax payable-Depreciation at Dec. 31, 20x0 30% 26,400 20X1 20x2 Estimated tax payment made Tax depreciation Unrealized gain on short-term investment Unrealized gain on long-term investment 2,500 3,700 36,800 37,400 3,900 4,300 5,700 20X1 20x2 Accounts payable 155,050 223,278 Accounts receivable Accumulated depreciation Additional paid-in capital 33,800 35,500 126,100 153,800 175,600 184,400 Amortization expense 2,500 2,600 Cash 51,900 54,500 Common stock ($1 par value) 119,900 125,900 Cost of goods sold 206,900 217,800 Deferred taxes payable - Depreciation ??? ??? Deferred taxes payable - Long-term investment ??? ??? Deferred taxes payable Short-term investment ??? ??? Depreciation expense 26,300 27,700 Dividends declared 4,200 4,300 Dividends payable 860 900 Equipment Insurance expense Interest expense Interest income 554,400 665,300 54,700 57,600 12,300 11,700 21,700 20,700 Interest payable 590 600 Interest receivable 2,100 2,200 Inventory 94,600 99,300 Long-term investment at cost 43,700 Marketing expense 85,200 89,700 Marketing payable 16,600 17,400 Note receivable 414,700 389,818 Notes payable 291,600 274,100 Patent 26,000 23,400 Prepaid insurance 21,300 22,400 Retained earnings-beginning 239,800 ??? Salaries payable 21,600 22,700 Salary expense 109,500 115,300 Sales 608,500 640,500 Short-term investment at cost 38,800 38,800 Tax expense ??? ??? Taxes payable ??? 777 Utilities expense 73,100 76,900 Utilities payable 10,500 11,000
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