On 1/1/15 Tao Inc., a calendar year company, is created with an equity investment of $200....

On 1/1/15 Tao Inc., a calendar year company, is created with an equity investment of $200. On the same day the company purchases 1 share of stock in another company for $100. The 1 share of stock is classified as Available for Sale. On 3/31/15 the share of stock is worth $75 per share. On 6/30/15 the share of stock is worth $90 per share. On 9/30/15 the share of stock is worth $110 per share. On 12/31/15 the share of stock is worth $105 per share. The corporate tax rate is 25.00%. Quarterly revenues and expenses are provided below and are all in cash. Tao Inc issues financial statements quarterly.

C: Provide all journal entries and t-accounts necessary to account for this transaction on an annual basis (from inception of company to the end of the fiscal year)

D: Create the financial statements: Income Statement, Statement of Retained Earnings and Balance Sheet, (from inception of company to the end of fiscal year 1)

End Qtr 1: Revs: 193 Exp: 110,35

End Qtr 2: Revs 195 Exp: 100.46

End Qtr 3: Revs 199 Exp: 105.89

End Qtr 4: Revs 202 Exp: 104.22

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ekkarill92 answered 1 year ago

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