[The following information applies to the questions displayed below.] The comparative balance sheets for 2024 and...

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[The following information applies to the questions displayed below.] The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are giv Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent Liabilities Accounts payable 2024 2023 $ 214 199 $ 90 203 15 13 214 209 13 17 156 125 205 159 459 409 (106) (129) 47 49 $ 1,416 $ 1,145 95 $ 59 $ 83 Salaries payable 15 20 Interest payable (bonds) 17 13 Income tax payable 21 23 Deferred tax liability 20 17 Notes payable 23 0 Lease liability 113 0 Bonds payable 224 284 Less: Discount on bonds (23) (26) Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock ARDUOUS COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Insurance expense Amortization expense Interest expense Loss on sale of equipment Income tax expense Net income 430 410 124 112 84 0 318 209 (9) 0 $ 1,416 $1,145 $ 595 38 2 $ 635 189 82 12 2 16 37 19 45 402 $ 233 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $120 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. Required: 1. Prepare the T-accounts for Arduous Company. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Beginning Balance Operating Activities: Cash Required: 1. Prepare the T-accounts for Arduous Company. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Beginning Balance Operating Activities: Investing Activities: Financing Activities: Ending Balance Cash Accounts Receivable Inventory Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Prepaid Insurance Investment Revenue Receiv Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Long-term Investments Land Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Required information Debit Beginning Balance Ending Balance Buildings and Equipment Accumulated Depreciatic Credit Debit Beginning Balance Ending Balance Patent Accounts Payable Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Salaries Payable Interest Payable Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Income Tax Payable Deferred Tax Liability Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Lease Liability Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Bonds Payable Discount on Bonds Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Paid-in Capital Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Preferred Stock Retained Earnings Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Treasury Stock Ending Balance Sales Credit Debit Beginning Balance Ending Balance Investment Revenue Gain on Sale of Treasury E Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Cost of Goods Sold Salaries Expense Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Depreciation Expense Amortization Expense Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Required information Ending Balance Insurance Evnanen Ending Balance Interest Expense Income Tax Expense Loss on Sale of Equipme Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Net Income (Income Summary) Debit Credit Beginning Balance Ending Balance Ending Balance [The following information applies to the questions displayed below.] The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are giv Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent Liabilities Accounts payable 2024 2023 $ 214 199 $ 90 203 15 13 214 209 13 17 156 125 205 159 459 409 (106) (129) 47 49 $ 1,416 $ 1,145 95 $ 59 $ 83 Salaries payable 15 20 Interest payable (bonds) 17 13 Income tax payable 21 23 Deferred tax liability 20 17 Notes payable 23 0 Lease liability 113 0 Bonds payable 224 284 Less: Discount on bonds (23) (26) Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock ARDUOUS COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of treasury bills Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Insurance expense Amortization expense Interest expense Loss on sale of equipment Income tax expense Net income 430 410 124 112 84 0 318 209 (9) 0 $ 1,416 $1,145 $ 595 38 2 $ 635 189 82 12 2 16 37 19 45 402 $ 233 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $120 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024. h. $60 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $8 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. Required: 1. Prepare the T-accounts for Arduous Company. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Beginning Balance Operating Activities: Cash Required: 1. Prepare the T-accounts for Arduous Company. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Beginning Balance Operating Activities: Investing Activities: Financing Activities: Ending Balance Cash Accounts Receivable Inventory Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Prepaid Insurance Investment Revenue Receiv Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Long-term Investments Land Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Required information Debit Beginning Balance Ending Balance Buildings and Equipment Accumulated Depreciatic Credit Debit Beginning Balance Ending Balance Patent Accounts Payable Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Salaries Payable Interest Payable Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Income Tax Payable Deferred Tax Liability Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Lease Liability Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Bonds Payable Discount on Bonds Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Paid-in Capital Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Preferred Stock Retained Earnings Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Treasury Stock Ending Balance Sales Credit Debit Beginning Balance Ending Balance Investment Revenue Gain on Sale of Treasury E Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Cost of Goods Sold Salaries Expense Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Depreciation Expense Amortization Expense Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Required information Ending Balance Insurance Evnanen Ending Balance Interest Expense Income Tax Expense Loss on Sale of Equipme Debit Credit Debit Beginning Balance Beginning Balance Ending Balance Net Income (Income Summary) Debit Credit Beginning Balance Ending Balance Ending Balance