The following is a partial list of accounts and their balances for Davidson Company as at December 31, 2016:

Net income for the year was $838,000 and the company declared $400,000 in dividends during the year. There were items of other comprehensive income in the year. The investments are not expected to be sold in the next 12 months. The long-term debt is repayable over five years, with 20% of the balance due on June 30, 2017.

Required:
Prepare, in good form, the following:

a. A statement of changes in equity.
b. A balance sheet using the current/non-current presentation. When possible, group related items into one line to obtain the minimum number of line items to satisfy presentation requirements in IFRS.

Transcribed Image Text:

Debit Credit $ 1,357,000 Accounts payable $ 3,035,000 Accounts receivable Accumulated depreciation-equipment 3,450,000 Accumulated depreciation-plant 2,500,000 Accumulated other comprehensive income-gain on available- 140,000 for-sale investments Cash 457,000 Common shares 20,000,000 Depreciation-equipment 690,000 Depreciation-plant 500,000 Equipment 5,520,000 Income tax expense 850,000 Income tax payable 125,000 Intangible assets 1,750,000 Inventories 820,000 Land 12,000,000 Long-term debt 30,000,000 Plant 50,000,000 Preferred shares 10,000,000 Retained earnings, December 31, 2016 7,650,000 Available-for-sale investments-cost 1,500,000 Available-for-sale investments-valuation adjustment 140,000