?? Prada Corporation is a public retail company which follows IFRS. Justin Reece, the company's controller, recently

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Prada Corporation is a public retail company which follows IFRS. Justin Reece, the company's controller, recently prepared an Income Statement and a Statement of Retained Earnings for the year ending December 31, 2020 (see below). Reece believes that both statements fairly present the company's performance but confesses that he has not familiarized himself recently with the latest financial reporting standards under IFRS. Prada Corporation uses a tax rate of 35% for all applicable items. Some items are shown on a before tax (or pre-tax) basis while other items are shown on an after-tax (or net of tax) basis. Sales Cost of goods sold Selling expenses PRADA CORPORATION Income Statement (prepared by controller) For the Year Ended December 31, 2020 Administrative expenses Income before gains and (losses) and income tax Other gains and (losses) Gain on remeasurement of FV-OCI investment (pre-tax) Dividends received Correction for depreciation error made in 2019 (pre-tax) Income before income taxes Income tax expense Income before loss from tornado Loss from tomado (net of tax) Net income 214,446 81,305 57,418 37,500 44,000 (26,440) 452,109 353,169 98,940 55,060 154,000 (53,900) 100,100 (10,400) $89,700 Retained Earnings - January 1, 2020 Add: Net income Loss due to write down of inventory (net of tax) Retained Earnings - December 31, 2020 Additional information is as follows: (a) (b) PRADA CORPORATION Statement of Retained Earnings (prepared by controller) For the Year Ended December 31, 2020 Required: (a) (c) (b) $89,700 (9,100) $155,000 80,600 $23 5.600 On January 1, 2020, the balance in the Accumulated Other Comprehensive Income account was $134,000. During the year, additional common shares were issued for $100,000. On December 31, 2020, the common shares account had an ending balance of $515,000. The weighted average number of common shares issued and outstanding throughout 2020 was 200,000 shares. Prepare in good form a Statement of Comprehensive Income in multiple-step format for Prada Corporation for the year ending December 31, 2020. (12 marks) Prepare in good form a Statement of Changes in Equity for Prada Corporation for the year ending December 31, 2020. (8 marks) Note: Both statements must comply with IFRS reporting standards. Prada Corporation is a public retail company which follows IFRS. Justin Reece, the company's controller, recently prepared an Income Statement and a Statement of Retained Earnings for the year ending December 31, 2020 (see below). Reece believes that both statements fairly present the company's performance but confesses that he has not familiarized himself recently with the latest financial reporting standards under IFRS. Prada Corporation uses a tax rate of 35% for all applicable items. Some items are shown on a before tax (or pre-tax) basis while other items are shown on an after-tax (or net of tax) basis. Sales Cost of goods sold Selling expenses PRADA CORPORATION Income Statement (prepared by controller) For the Year Ended December 31, 2020 Administrative expenses Income before gains and (losses) and income tax Other gains and (losses) Gain on remeasurement of FV-OCI investment (pre-tax) Dividends received Correction for depreciation error made in 2019 (pre-tax) Income before income taxes Income tax expense Income before loss from tornado Loss from tomado (net of tax) Net income 214,446 81,305 57,418 37,500 44,000 (26,440) 452,109 353,169 98,940 55,060 154,000 (53,900) 100,100 (10,400) $89,700 Retained Earnings - January 1, 2020 Add: Net income Loss due to write down of inventory (net of tax) Retained Earnings - December 31, 2020 Additional information is as follows: (a) (b) PRADA CORPORATION Statement of Retained Earnings (prepared by controller) For the Year Ended December 31, 2020 Required: (a) (c) (b) $89,700 (9,100) $155,000 80,600 $23 5.600 On January 1, 2020, the balance in the Accumulated Other Comprehensive Income account was $134,000. During the year, additional common shares were issued for $100,000. On December 31, 2020, the common shares account had an ending balance of $515,000. The weighted average number of common shares issued and outstanding throughout 2020 was 200,000 shares. Prepare in good form a Statement of Comprehensive Income in multiple-step format for Prada Corporation for the year ending December 31, 2020. (12 marks) Prepare in good form a Statement of Changes in Equity for Prada Corporation for the year ending December 31, 2020. (8 marks) Note: Both statements must comply with IFRS reporting standards.

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a PRADA CORPORATION STATEMENT OF COMPREHENSIVE INCOME prepared by controller for the year ended Dec... View the full answer