Information for 2019 follows for Forest Glen Corporation:
Retained earnings, January 1, 2019 $ 1,980,000
Sales revenue 35,000,000
Cost of goods sold 29,000,000
Interest income 150,000
Selling and Administrative expenses 3,000,000
Loss resulting from calculation error on depreciation in 2018 (pre-tax) 600,000
Loss on impairment of goodwill (not tax deductible) 500,000
Gain on sale of fair value-net income investments (normal, recurring) 100,000
Loss-other (due to flood damage) 400,000
Loss from disposal of discontinued division (pre-tax) 350,000
Loss from operation of discontinued division (pre- tax) 200,000
Dividends declared on common shares 250,000
Forest Glen decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dynamic Corporation. During 2019, there were 800,000 common shares outstanding all year. Forest Glen’s tax rate is 20% on operating income and all gains and losses (use this rate where the tax provisions are not given). Forest Glen prepares financial statements in accordance with IFRS and accounts for its investments in accordance with IAS 39. Note: pre-tax means before tax.
Instructions:
a) Prepare a multi-step statement of comprehensive income showing expenses by function.
b) Prepare a Statement of Changes in Shareholders’ Equity
Information for 2019 follows for Forest Glen Corporation: Retained earnings, January 1, 2019 $ 1,980,000 Sales...
Problem 4-03 Information for 2020 follows for Whispering Winds Corp.: Retained earnings, January 1, 2020 $2,020,000 Sales revenue 37,400,000 Cost of goods sold 29,202,000 Interest income 150,000 Selling and administrative expenses 4,590,000 Unrealized gain on FV-OCI equity investments (gains/losses not recycled) 355,000 Loss on impairment of goodwill 541,000 Income tax on continuing operations for 2020 (assume this is correct) 705,000 Assessment for additional income tax for 2018 (normal, recurring, and not caused by an error) 486,000 Gain on disposal of...
please help me to make corrections. thanks Information for 2020 follows for Swifty Corp.: Retained earnings, January 1, 2020 Sales revenue Cost of goods sold Interest income Selling and administrative expenses Unrealized gain on FV-OCI equity investments (gains/losses not recycled) Loss on impairment of goodwill Income tax on continuing operations for 2020 (assume this is correct) Assessment for additional income tax for 2018 (normal, recurring, and not caused by an error) Gain on disposal of FV-NI investments Loss from flood...
The following information is related to Concord Company for 2020. Retained earnings balance, January 1, 2020 $960,400 Sales Revenue 24,500,000 Cost of goods sold 15,680,000 Interest revenue 68,600 Selling and administrative expenses 4,606,000 Write-off of goodwill 803,600 Income taxes for 2020 1,219,120 Gain on the sale of investments 107,800 Loss due to flood damage 382,200 Loss on the disposition of the wholesale division (net of tax) 431,200 Loss on operations of the wholesale division (net of tax) 88,200 Dividends declared...
The following information is related to Whispering Company for 2020. Retained earnings balance, January 1, 2020 $1,078,000 Sales Revenue 27,500,000 Cost of goods sold 17,600,000 Interest revenue 77,000 Selling and administrative expenses 5,170,000 Write-off of goodwill 902,000 Income taxes for 2020 1,368,400 Gain on the sale of investments 121,000 Loss due to flood damage 429,000 Loss on the disposition of the wholesale division (net of tax) 484,000 Loss on operations of the wholesale division (net of tax) 99,000 Dividends declared...
The following information is related to Marigold Company for 2020. Retained earnings balance, January 1, 2020 $940,800 Sales Revenue 24,000,000 Cost of goods sold 15,360,000 Interest revenue 67,200 Selling and administrative expenses 4,512,000 Write-off of goodwill 787,200 Income taxes for 2020 1,194,240 Gain on the sale of investments 105,600 Loss due to flood damage 374,400 Loss on the disposition of the wholesale division (net of tax) 422,400 Loss on operations of the wholesale division (net of tax) 86,400 Dividends declared...
Question 4 The following information is related to Oriole Company for 2020. Retained earnings balance, January 1, 2020 $1,254,400 Sales Revenue 32,000,000 Cost of goods sold 20,480,000 Interest revenue 89,600 Selling and administrative expenses 6,016,000 Write-off of goodwill 1,049,600 Income taxes for 2020 1,592,320 Gain on the sale of investments 140,800 Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) 563,200 Loss on operations of the wholesale division (net of tax) 115,200 Dividends...
The following information is related to Stellar Company for 2017. Retained earnings balance, January 1, 2017 $981,230 Sales Revenue 26,181,600 Cost of goods sold 16,144,500 Interest revenue 71,400 Selling and administrative expenses 4,762,000 Write-off of goodwill 836,600 Income taxes for 2017 1,343,100 Gain on the sale of investments 117,400 Loss due to flood damage 395,000 Loss on the disposition of the wholesale division (net of tax) 449,000 Loss on operations of the wholesale division (net of tax) 97,610 Dividends declared...
The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $999,600 25,500,000 16,320,000...
Problem 4-01 The following information is related to Wildhorse Company for 2020. Retained earnings balance, January 1, 2020 $1,215,200 Sales Revenue 31,000,000 Cost of goods sold 19,840,000 Interest revenue 86,800 Selling and administrative expenses 5,828,000 Write-off of goodwill 1,016,800 Income taxes for 2020 1,542,560 Gain on the sale of investments 136,400 Loss due to flood damage 483,600 Loss on the disposition of the wholesale division (net of tax) 545,600 Loss on operations of the wholesale division (net of tax) 111,600...
PROBLEMS P4-1 (L03,4,6) (Multiple-Step Statement, Retained Earnings Statement) The following information is related to Dickin- son Company for 2017. Retained earnings balance, January 1, 2017 Sales revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2017 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) 16,000,000 70,000 820,000 1,244,000...