3. Exercise 4-10 REVISED (reproduced below) The following is information for Gottlieb Corp. for the year...

 

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3. Exercise 4-10 REVISED (reproduced below) The following is information for Gottlieb Corp. for the year ended December 31, 2017: Net sales revenue $1,300,000 Loss on inventory due to decline in NRV Loss on sale of equipment Unrealized gain on FV-OCI investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue 42,000 7,000 780,000 65,000 48,000 20,000 Depreciation expense related to buildings omitted by mistake in 2016 Retained earnings (at Dec 31, 2016). Loss-other (due to expropriation of land Dividends declared AOCI $80,000 35,000 55,000 980,000 60,000 45,000 32,000 CR The effective tax rate is 25% on all items. Gottlieb prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/losses on FV-OCI investments are recycled through net income. Required: (a) Prepare a multiple-step statement of comprehensive income for 2017. Ignore calculation of EPS. (b) Calculate Retained Earnings and AOCI for 2017. (e) Prepare the Dec 31, 2017 journal entry to record the prior period mistake in depreciation (use only SOFP accounts!!). 3. Exercise 4-10 REVISED (reproduced below) The following is information for Gottlieb Corp. for the year ended December 31, 2017: Net sales revenue $1,300,000 Loss on inventory due to decline in NRV Loss on sale of equipment Unrealized gain on FV-OCI investments Interest income Cost of goods sold Selling expenses Administrative expenses Dividend revenue 42,000 7,000 780,000 65,000 48,000 20,000 Depreciation expense related to buildings omitted by mistake in 2016 Retained earnings (at Dec 31, 2016). Loss-other (due to expropriation of land Dividends declared AOCI $80,000 35,000 55,000 980,000 60,000 45,000 32,000 CR The effective tax rate is 25% on all items. Gottlieb prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/losses on FV-OCI investments are recycled through net income. Required: (a) Prepare a multiple-step statement of comprehensive income for 2017. Ignore calculation of EPS. (b) Calculate Retained Earnings and AOCI for 2017. (e) Prepare the Dec 31, 2017 journal entry to record the prior period mistake in depreciation (use only SOFP accounts!!).

Answer rating: 100% (QA)

Statement of Comprehensive Income For the Year Ended December 31 2017 Sales revenue Net sales revenu... View the full answer