Peyton Company has hired you to prepare financial statements for the year ended December 31, 2023. Note that Peyton Company owns 30% of the outstanding shares of Manning Company and appropriately accounts for the investment using the equity method. Listed below are all the accounts from Peyton Company's trial balance as of 12/31/2023, presented in random order (negative numbers indicate a credit balance). 4 6 8 9 20 21 22 23 24 25 26 27 28 29 30 31 32 33 1. Prepare an income statement for Peyton Company for 2023. 2. Prepare a classified balance sheet as of December 31, 2023. Be sure that you identify which assets and liabilities are current and non-current. Peyton Company Trial Balance: Investment in Manning Co Amortization expense Long-term debt Property, Plant, and Equipment Salaries and wages expense Cost of Goods Sold Patents (net) Sales Common stock Rent expense Accumulated Depreciation - Property, Plant, and Equipment Accounts payable Equity in earnings from Manning Co Accounts receivable Additional paid-in capital Cash Advertising expenses Retained earnings, 1/1 Current portion of long-term debt Inventory Depreciation expense 120,000 2,000 (130,000) 223,000 80,000 120,000 13,000 (250,000) (20,000) 10,000 (113,000) (20,000) (10,500) 50,000 (150,000) 100,000 5,500 (90,000) (14,000) 64,000 10,000
Peyton Company has hired you to prepare financial statements for the year ended December 31, 2023. Note that Peyton Company owns 30% of the outstanding shares of Manning Company and appropriately accounts for the investment using the equity method. Listed below are all the accounts from Peyton Company's trial balance as of 12/31/2023, presented in random order (negative numbers indicate a credit balance). 4 6 8 9 20 21 22 23 24 25 26 27 28 29 30 31 32 33 1. Prepare an income statement for Peyton Company for 2023. 2. Prepare a classified balance sheet as of December 31, 2023. Be sure that you identify which assets and liabilities are current and non-current. Peyton Company Trial Balance: Investment in Manning Co Amortization expense Long-term debt Property, Plant, and Equipment Salaries and wages expense Cost of Goods Sold Patents (net) Sales Common stock Rent expense Accumulated Depreciation - Property, Plant, and Equipment Accounts payable Equity in earnings from Manning Co Accounts receivable Additional paid-in capital Cash Advertising expenses Retained earnings, 1/1 Current portion of long-term debt Inventory Depreciation expense 120,000 2,000 (130,000) 223,000 80,000 120,000 13,000 (250,000) (20,000) 10,000 (113,000) (20,000) (10,500) 50,000 (150,000) 100,000 5,500 (90,000) (14,000) 64,000 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Peyton Company has hired you to prepare financial statements for the year ended December 31, 2023. Note
that Peyton Company owns 30% of the outstanding shares of Manning Company and appropriately accounts
for the investment using the equity method. Listed below are all the accounts from Peyton Company's trial
5 balance as of 12/31/2023, presented in random order (negative numbers indicate a credit balance).
=160079
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456
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28523X
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1. Prepare an income statement for Peyton Company for 2023.
2. Prepare a classified balance sheet as of December 31, 2023. Be sure that you
identify which assets and liabilities are current and non-current.
Peyton Company Trial Balance:
Investment in Manning Co
Amortization expense
Long-term debt
Property, Plant, and Equipment
Salaries and wages expense
Cost of Goods Sold
Patents (net)
Sales
Common stock
Rent expense
Accumulated Depreciation - Property, Plant, and Equipment
Accounts payable
Equity in earnings from Manning Co
Accounts receivable
Additional paid-in capital
Cash
Advertising expenses
Retained earnings, 1/1
Current portion of long-term debt
Inventory
Depreciation expense
+
120,000
2,000
(130,000)
223,000
80,000
120,000
13,000
(250,000)
(20,000)
10,000
(113,000)
(20,000)
(10,500)
50,000
(150,000)
100,000
5,500
(90,000)
(14,000)
64,000
10,000
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