Use the information below to construct the Dec. 31, 2019 Balance Sheet and deferred tax and valuation equity worksheets.

[answerhappygod]

Use The Information Below To Construct The Dec 31 2019 Balance Sheet And Deferred Tax And Valuation Equity Worksheets 1 (210.75 KiB) Viewed 68 times

Use the information below to construct the Dec. 31, 2019 Balance Sheet and deferred tax and valuation equity worksheets. Note: Not all items will be used (all balances are as of 12/31/19, unless otherwise stated) 35,000 250,000 32,000 518,000 13,000 12,000 5,000 20,500 e f. g. h. i j. k. 1. Cash on hand and in checking account Market value of all equipment 2018 Income taxes paid in 2019 Cash operating expenses paid in 2019 Principal portion of 15-year loan due in 2020 Principal paid on 15-year loan during 2019 Inventories: Supplies Insurance premiums for 2020 paid in Dec. 2019 Investment in local brewery made in 2006 for $50,000, estimated market value of $65,000 as of 12/31/19 Change in accounts payable during 2019 Inventories: Completed goods Principal balance on operating (short-term) loan Accrued interest on 15-year note Accrued interest on operating (short-term) loan Rent for January 2020, paid in Dec. 2019 Accumulated depreciation on equipment Accrued income, social security, and payroll taxes 2020 liquor license fees, paid in Dec. 2019 Original cost of all equipment owned Legal/accountant services used in 2019, bill not yet received Accounts payable Total principal balance on 15-year loan Mutual funds valued at $50,000 as of 12/31/19, cost value of $35,000 Capital originally contributed by owner(s) m. n. 0. p. q. ??? 1,500 16,000 10,000 8,600 900 4,500 50,000 21,000 4,000 310,000 2,500 8,000 223,000 ??? 100,000 r. S. t. u. V. W. X. Other: Federal tax rate Self-employment tax rate State tax rate 25% 15.30% 5% Note that a few items have already been added for you (a. and b.). There are subtotal calculations in some cells that will update as you enter values on the balance sheet or deferred tax worksheets (cells shaded in gray). The deferred tax value, current and non- current are shaded in red on both the balance sheet and the deferred tax worksheet. The valuation equity cells are shaded in blue on both the balance sheet and the valuation equity worksheet. These cells all contain formulas and references that should not be changed.
Assignment: 1. Develop a completed balance sheet (B/S), including deferred tax (DT) and valuation equity (VE) worksheets. Reference line items above on the B/S, DT, and VE reports using the item letters (a few examples are completed for you). (80 points)
Balance Sheet for 2019 2019 a. Notes 35,000 Current Asset 250,000 NonCurrent Asset 32,000 35,000 a. 8,000 b. c. d. 518,000 e. f. As of: December 31, 2019 ASSETS CURRENT ASSETS Cash Savings & short-term deposits Marketable securities (at market) Accounts receivable Inventories: Supplies and other Raw Inputs Intermediate goods Completed Goods Cash investment in work-in-progress Prepaid expenses Other current assets - business Other current assets - personal TOTAL CURRENT ASSETS LIABILITIES AND OWNER EQUITY CURRENT LIABILITIES Accounts payable Notes payable within 1 year Current portion of all term debt Accrued interest Accrued expenses Accrued taxes Accrued business expenses Other accrued items Current portion-deferred taxes Other current liabilities - business Other current liabilities - personal 13,000 12,000 5,000 20,500 g. h. i. j. k. I. m. n. Cash on hand and in checking account Market value of all equipment 2018 Income taxes paid in 2019 Cash operating expenses paid in 2019 Principal portion of 15-year loan due in 2020 Principal paid on 15-year loan during 2019 Inventories: Supplies Insurance premiums for 2020 paid in Dec. 2019 Investment in local brewery made in 2006 for $50,000, estimated market value of $65,000 as of 12/31/19 Change in accounts payable during 2019 Inventories: Completed goods Principal balance on operating (short-term) loan Accrued interest on 15-year note Accrued interest on operating (short-term) loan Rent for January 2020, paid in Dec. 2019 Accumulated depreciation on equipment Accrued income, social security, and payroll taxes 2020 liquor license fees, paid in Dec. 2019 Original cost of all equipment owned Legal/accountant services used in 2019, bill not yet received Accounts payable Total principal balance on 15-year loan Mutual funds valued at $50,000 as of 12/31/19, cost value of $35,000 Capital originally contributed by owner(s) 35,000 TOTAL CURRENT LIABILITIES 8,000 0. p. ??? 1,500 16,000 10,000 8,600 900 4,500 50,000 21,000 4,000 310,000 2,500 8,000 Current Liabilities 223,000 ??? 100,000 Equity Section 4. r. 250,000 b. S. t u. V. NONCURRENT LIABILITIES Noncurrent portion of term business debt: Non-real estate debt: Notes with original maturity less than 10 years Notes with original maturity greater than 10 years Real estate debt: Notes with original maturity less than 10 years Notes with original maturity greater than 10 years Noncurrent portion-deferred taxes Other noncurrent liabilities - business Other noncurrent liabilities - personal w NONCURRENT ASSETS Intermediate assets (at market) Machinery & equipment (at market) Investments in capital leased assets Investments in cooperatives Investments in other business entities Retirement accounts Cash value of insurance policies Long-term financial assets & nonmarketable securities Business real estate (at market) Land Buildings Other noncurrent assets - business (at market) Other noncurrent assets-personal (at market) TOTAL NONCURRENT ASSETS X Other: Federal tax rate Self-employment tax rate State tax rate 25% 15.30% 5% TOTAL NONCURRENT LIABILITIES 0 250,000 TOTAL LIABILITIES 8,000 100,000 X OWNER EQUITY Contributed capital Retained earnings Valuation equity TOTAL OWNER EQUITY TOTAL LIABILITIES & OWNER EQUITY 277,000 285,000 TOTAL ASSETS 285,000 NOTES to accompany Financial Statements: Book values (cost less depreciation) Financial and other investments Machinery and equipment Real-estate land Real-estate buildings
Calculation of Deferred Taxes for As of: December 31, 2019 Market Value Tax Basis Difference Current Portion 0 Valuation of Specific Current Asset Items Marketable securities Inventories Accounts receivable Cash investment in work in progress Prepaid expenses 0 0 0 1. Excess of Market Value over Tax Basis of Current Assets (Sum) Deductions Accounts payable Accrued interest Accrued taxes Other accrued expenses 2. Total deductions 3. Current portion of deferred taxable income (1-2, zero if negative) 4. Estimated federal and state income tax rate 5. Deferred federal and state tax expense [3x4] 6. Self-employment tax rate 7. Income Cap on Social Security Tax 8. Deferred self-employment tax [the minimum of 3x6 or 7] 9. Total current portion of deferred income taxes [5+8] 30% 0 15.3% 137.700 0 Noncurrent Portion Market Value Tax Basis Gain/Loss 0 Deferred taxable income from noncurrent assets Real Estate - Land Machinery and equipment Real Estate - Buildings Other Noncurrent Assets 0 0 10. Noncurrent portion of deferred taxable income (sum, zero if negative) 11. Estimated federal and state income tax rate 12. Total noncurrent portion of deferred taxes (10x11) 0 30% Valuation Equity: Gain/Loss Real Estate - Land Machinery and equipment Real Estate - Buildings Other Business Assets Financial Assets/Marketable Securities Less: Personal Liabilities NonCurrent Deferred Taxes Other Total Valuation Equity $0