Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December...
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Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue $1,220,000 Loss on inventory due to decline in net realizable value $72,000 Unrealized gain on FV-OCI equity investments 45,000 Loss on disposal of equipment 45,000 Interest income 9,000 Depreciation expense related to buildings omitted by mistake in 2019 51,000 Cost of goods sold 732,000 Retained earnings at December 31, 2019 940,000 Selling expenses Administrative expenses 61,000 Loss from expropriation of land 55,000 51,000 Dividends declared 41,000 Dividend revenue 15,000 The effective tax rate is 20% on all items. Blue Spruce prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income. Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS. Blue Spruce Corp. Statement of Financial Performance Items that will not be reclassified subsequently to net income or loss: %2$ Prepare the retained earnings section of the statement of changes in equity for 2020. (List items that increase retained earnings first following the adjustment of prior years.) Blue Spruce Corp. Excerpt from Statement of Changes in Equity 2$ $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the journal entry to record the depreciation expense omitted by mistake in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXT LINK TO TEXT LINK TO TEXT Exercise 4-10 a-c The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue $1,220,000 Loss on inventory due to decline in net realizable value $72,000 Unrealized gain on FV-OCI equity investments 45,000 Loss on disposal of equipment 45,000 Interest income 9,000 Depreciation expense related to buildings omitted by mistake in 2019 51,000 Cost of goods sold 732,000 Retained earnings at December 31, 2019 940,000 Selling expenses Administrative expenses 61,000 Loss from expropriation of land 55,000 51,000 Dividends declared 41,000 Dividend revenue 15,000 The effective tax rate is 20% on all items. Blue Spruce prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income. Prepare a multiple-step statement of financial performance for 2020, showing expenses by function. Ignore calculation of EPS. Blue Spruce Corp. Statement of Financial Performance Items that will not be reclassified subsequently to net income or loss: %2$ Prepare the retained earnings section of the statement of changes in equity for 2020. (List items that increase retained earnings first following the adjustment of prior years.) Blue Spruce Corp. Excerpt from Statement of Changes in Equity 2$ $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the journal entry to record the depreciation expense omitted by mistake in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXT LINK TO TEXT LINK TO TEXT
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Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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