Question

14. The following accounts and balances were taken from the 2020 financial statements of Global2, Inc. (in millions). Identify each account as an asset (A), liability (L), stockholder's equity (SE), revenue (R), or an expense (E). Retained Earnings Cost of Goods Sold Selling & Admin Expenses Cash Notes Payable Interest Expense Other Expenses 1,564.7 4,128.5 3,523.6 231.8 513.3 351.5 54.0 Long-term Debt Inventories Net Sales Accounts Payable Common Stock Income Tax Expense 5,619.0 574.5 8,853.3 577.5 103.8 322.1 Prepare an income statement for the year ended December 31, 2020.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 14
Income Statement	Amount $
Net Sales	8,853.30
Less: Cost of goods sold	4,128.50
Gross Profit	4,724.80
Less: Operating Expense
Selling & admin expense	3,523.60
Other expenses	54.00
Earnings before interest and taxes	1,147.20
Less: Interest Expense	351.50
Earnings before tax	795.70
Income tax expense	322.10
Net Income	473.60
Answer 15
Balance Sheet	Amount $
Assets
Current Assets
Cash and cash equivalents	138,849.00
Accounts Receivable	1,383,550.00
Prepaid Expenses	157,801.00
Short Term Investments	5,371.00
Total Current Assets	1,685,571.00
Fixed Assets
Land (using in business)	54,774.00
Land (no plans to develop)	755,510.00
Buildings	878,028.00
Equipment	2,947,978.00
Accumulated Depreciation- Equipment	(1,712,400.00)
Fixed Assets	2,923,890.00
Intangible Assets
Trademarks	2,765,892.00
Intangible Assets	2,765,892.00
Other Assets
Long term investments in Purple Corp.	251,836.00
Other Assets	251,836.00
Total Assets	7,627,189.00
Answer 16
First we will prepare income statement and statement of Owner's Capital then Balance Sheet.
Income Statement	Amount $
Bowling Revenue	18,180.00
Total Revenue	18,180.00
Less: Operating Expenses
Insurance Expense	780.00
Depreciation Expense	6,300.00
Interest expense	2,600.00
Total Operating Expenses	9,680.00
Net Income	8,500.00
Statement of Retained Earnings
Retained Earnings, Opening	40,000.00
Add: Net Income	8,500.00
Less: Dividends	1,300.00
Retained Earnings, Closing	47,200.00
Balance Sheet	Amount $
Assets
Current Assets
Cash	20,840.00
Accounts Receivable	12,600.00
Prepaid Insurance	4,680.00
Total Current Assets	38,120.00
Fixed Assets
Land	57,200.00
Buildings	105,800.00
Accumulated Depreciation- Building	(45,600.00)
Equipment	82,400.00
Accumulated Depreciation- Equipment	(18,720.00)
Fixed Assets	181,080.00
Intangible Assets
Patent	1,000.00
Intangible Assets	1,000.00
Other Assets
Long term investments in New Book Stock	3,000.00
Other Assets	3,000.00
Total Assets	223,200.00
Total Liabilities & Stockholder's Equity
Liabilities
Current Liabilities
Accounts Payable	11,500.00
Interest Payable	3,600.00
Mortgage Payable	11,300.00
Current Liabilities	26,400.00
Non Current Liabilities
Mortgage Payable	82,300.00
Non Current Liabilities	82,300.00
Total Liabilities	108,700.00
Stockholder's Equity
Common Stock	67,300.00
Retained Earnings	47,200.00
Stockholder's Equity	114,500.00
Total Liabilities & Owner's Equity	223,200.00