Question

Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue Unrealized gain on FV-OCI equity investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue $1,220,000 45,000 9,000 732,000 61,000 51,000 15,000 Loss on inventory due to decline in net realizable value Loss on disposal of equipment Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of land Dividends declared $72,000 45,000 51,000 940,000 55,000 41,000 The effective tax rate is 20% on all items. Blue Spruce prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income. Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS. Blue Spruce Corp. Statement of Financial Performance

Answer 1

Refer below images for the above mentioned questions, in a detailed way of solution.
Solution : Blue Sprace corp Statement of Financial performance for the year Ended December 31, 2020 Amount Amount 1220000 9 (732000) $488000 particolars Sales revenue cost of goods sold Gross profit operating expenses : - selling expenses - Administrative expenses Income from operations other revenuel & gains a - Dividend revenue - Interest income $ 61000 & Jidoo $($12000) $376000 4 1 000 $24000 49000 $ 400 000 & 45000 9 SS 000 (172000) $ 228000 & (45600) $ 182400 other expenses & losses: - loss on inventory due to $ 72000 decline in . NRV - Loss on disposal of equipment - Loss from expropriation Income before income taxe Income tax expense (at 2011 * $228000) Net income. other comprenhensive income Stooms that will not be reclassified subsequently to net income (or) loss : unrealized gain on fr-ar investments Cnet of & 9000* income tax) Comprehensive income $36000 218400 ( 45 000 x 2070 tax rate)

Blue Spruce corp. Excerpt from statements of changes in Equity for the year Ended December 31, 2020- Amoont particulars $ 940000 Retained earnings balance, Jan I as reported Correction for overstatement of net income in prior period (depreciation error) Ener of day of $10200 $(40800) restated Balance Add:- Net an, las income $ 899200 $ 182400 $ 1081600 $ (41000) Lessio Dividends declared $1040600 Detained earnings balance, December 31 ( 11000 x 207, tay rate) Journal entry to record the depreciation expense ommitted by mistalle in 2019: Retained Earnings Alc or $40800 Income tax payable Al or $ 10200 TO Accumulated Depreciation - Boeldings $1000