Question

Need help with this prob please!

Problem 4-12 Joe Schreiner, controller for Blue Spruce Company Inc., recently prepared the company's income statement and statement of changes in equity for 2017. Schreiner believes that the statements are a fair presentation of the company's financial progress during the current period, but he also admits that he has not examined any recent professional pronouncements on accounting

Answer 1

Ans-BLUE SPRUCE COMPANY INC.

STATEMENT OF COMPREHENSIVE INCOME

For the Year Ended December 31,2017

Sales Revenue		$370,000
Less:Sales Return and Allowances		16,040
Net Sales Revenue		353,960
Less: Cost of Goods Sold		199,510
Gross Profit/ (Loss)		154,450
Selling Expenses	39,640
Administrative Expenses	31,300
		70,940
Operating Income		83,510
Other Revenues $ Gains:-
Gain from Sale of Investments	31,800
Dividends Received	37,400
		69,200
		152,710
Total Other Expenses $ Losses
Loss on Expropriation		(14,700)
Income Before Income Tax		138,010
Income Tax Expense (30% of $138,010)		41,403
Net Income / (Loss)		96,607
Total Other Comprehensive Income
Unrealized Gain on FV-OCI Investments ($33,400-30%0f $33,400)		23,380
Comprehensive Income		$119,987

BLUE SPRUCE COMPANY INC.

Statement of Changes in Equity

For the Year Ended December 31, 2017

	Retained Earnings	Accumulated Other Comprehensive Income	Comprehensive Income
Balance January1, as Reported	$210,000	$110,000
Correction of Prior Year Error(Net of Tax)	(18,801)
Balance January 1 Restated	$191,199	$110,000
Net Income / (Loss)	$96,607		$96,607
Unrealized Gain on FV-OCI Investments		$23,380	$23,380
Total Comprehensive Income			$119,987
Balance , December 31	$287,806	$133,380