PHAROAH's balance sheet at December 31, 2020, is as follows.
 

PHAROAH, INC. BALANCE SHEET AS OF DECEMBER 31, 2020
Assets					Liabilities
Cash		$440			Notes payable		$1,000
Inventory		1,790			Pension liability		343
Total current assets		2,230			Total liabilities		1,343
Plant and equipment		2,000			Stockholders’ equity
Accumulated depreciation		(240	)		Common stock		2,000
		1,760			Retained earnings		888
Total assets		$3,990			Accumulated other comprehensive income		(241	)
					Total stockholders' equity		2,647
					Total liabilities and stockholders’ equity		$3,990

 

Additional information concerning PHAROAH’s defined benefit pension plan is as follows.
Projected benefit obligation at 12/31/20		$818.4
Plan assets (fair value) at 12/31/20		475.4
Unamortized past service cost at 12/31/20		150
Amortization of past service cost during 2021		15
Service cost for 2021		38
Discount rate		10	%
Expected rate of return on plan assets in 2021		12	%
Actual return on plan assets in 2021		10.9
Contributions to pension fund in 2021		65
Benefits paid during 2021		40
Expected remaining service life of employees		15
Average period to vesting of prior service costs		10
Unamortized net loss due to changes in actuarial assumptions    and deferred net losses on plan assets at 12/31/20		91

 

Other information about PHAROAH is as follows.
Salary expense, all paid with cash during 2021		$700
Sales, all for cash		2,990
Purchases, all for cash		2,020
Inventory at 12/31/21		1,820

Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value.

Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year.

Dividends declared and paid are $220 in 2021.

 

 

Transcribed Image Text:

Prepare a balance sheet as of December 31, 2021. (List Assets in order of liquidity. Round answers to 1 decimal place, e.g. 52.7.) P PHAROAH, INC. Balance Sheet December 31, 2021 Assets: $ LA Prepare a balance sheet as of December 31, 2021. (List Assets in order of liquidity. Round answers to 1 decimal place, e.g. 52.7.) P PHAROAH, INC. Balance Sheet December 31, 2021 Assets: $ LA

Answer rating: 100% (QA)

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