Assets STATEMENTS OF FINANCIAL POSITION At December 31, Year 6 HD Ltd. Olympic Homes $ 552,000...

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Assets STATEMENTS OF FINANCIAL POSITION At December 31, Year 6 HD Ltd. Olympic Homes $ 552,000 Properties under renovation Investment in Olympic Homes Inventory Cash Other assets Shareholders' Equity and Liabilities Ordinary shares/capital contributed Retained/accumulated earnings Mortgage payable Loan payable to Mr. Saeid Accounts payable Other liabilities $ 164,000 442,000 82,000 1,264,000 $ 1,952,000 55,200 777,000 $ 1,384,200 $ 532,000 $ 492,000 316,000 57,000 219,000 132,000 412,000 243,000 692,000 241,200 $ 1,952,000 $ 1,384,200 Sales INCOME STATEMENTS For the Year Ended December 31, Year 6 Income from Olympic HD Ltd. $ 2,500,000 51,000 2,551,000 1,750,000 Olympic Homes $ 1,620,000 0 1,620,000 Cost of goods sold Selling expenses Other expenses Income tax expense Profit 1,053,000 282,000 142,000 198,000 159,000 112,000 0 2,286,000 1,410,000 $ 265,000 $ 210,000 Additional information: • During Year 6, HD had sales of $150,000 to JC at a markup of 20 percent of selling price. At December 31, Year 6, the property under renovation included supplies purchased from HD of $78,000. • Olympic completed two projects under the joint operations. Olympic distributed $51,000 of income to each of the partners in December. HD accounts for its share of income from the joint operations when it is received from Olympic. ⚫ HD pays income tax at a rate of 40%. The income earned by Olympic is not taxed in Olympic. It is flowed through and taxed in the hands of the partners. Required: Prepare corrected Year 6 financial statements for HD in accordance with IFRS 11. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit $ sign in your response.) Required: Prepare corrected Year 6 financial statements for HD in accordance with IFRS 11. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required. Input all amounts as positive values. Omit $ sign in your response.) HD LTD. STATEMENTS OF FINANCIAL POSITION At December 31, Year 6 Assets Properties under renovation $ 178,800 Inventory Cash Other assets Shareholders' Equity and Liabilities Ordinary shares Retained earnings Mortgage payable Loan payable to Mr. Saeid Accounts payable Other liabilities 442,000 100,400 1,525,080 $ 2,246,280 $ 532,000 331,880 73,000 44,000 493,000 772,400 HD LTD. INCOME STATEMENTS For the Year Ended December 31, Year 6 $ 2,990,000 Sales Income from Olympic 0 $ 2,990,000 Cost of goods sold $ 2,056,200 Selling expenses Other expenses Income tax expense 348,000 195,000 137,920 $ 2,737,120 Profit $ 252,880 $ 2,246,280 Assets STATEMENTS OF FINANCIAL POSITION At December 31, Year 6 HD Ltd. Olympic Homes $ 552,000 Properties under renovation Investment in Olympic Homes Inventory Cash Other assets Shareholders' Equity and Liabilities Ordinary shares/capital contributed Retained/accumulated earnings Mortgage payable Loan payable to Mr. Saeid Accounts payable Other liabilities $ 164,000 442,000 82,000 1,264,000 $ 1,952,000 55,200 777,000 $ 1,384,200 $ 532,000 $ 492,000 316,000 57,000 219,000 132,000 412,000 243,000 692,000 241,200 $ 1,952,000 $ 1,384,200 Sales INCOME STATEMENTS For the Year Ended December 31, Year 6 Income from Olympic HD Ltd. $ 2,500,000 51,000 2,551,000 1,750,000 Olympic Homes $ 1,620,000 0 1,620,000 Cost of goods sold Selling expenses Other expenses Income tax expense Profit 1,053,000 282,000 142,000 198,000 159,000 112,000 0 2,286,000 1,410,000 $ 265,000 $ 210,000 Additional information: • During Year 6, HD had sales of $150,000 to JC at a markup of 20 percent of selling price. At December 31, Year 6, the property under renovation included supplies purchased from HD of $78,000. • Olympic completed two projects under the joint operations. Olympic distributed $51,000 of income to each of the partners in December. HD accounts for its share of income from the joint operations when it is received from Olympic. ⚫ HD pays income tax at a rate of 40%. The income earned by Olympic is not taxed in Olympic. It is flowed through and taxed in the hands of the partners. Required: Prepare corrected Year 6 financial statements for HD in accordance with IFRS 11. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit $ sign in your response.) Required: Prepare corrected Year 6 financial statements for HD in accordance with IFRS 11. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required. Input all amounts as positive values. Omit $ sign in your response.) HD LTD. STATEMENTS OF FINANCIAL POSITION At December 31, Year 6 Assets Properties under renovation $ 178,800 Inventory Cash Other assets Shareholders' Equity and Liabilities Ordinary shares Retained earnings Mortgage payable Loan payable to Mr. Saeid Accounts payable Other liabilities 442,000 100,400 1,525,080 $ 2,246,280 $ 532,000 331,880 73,000 44,000 493,000 772,400 HD LTD. INCOME STATEMENTS For the Year Ended December 31, Year 6 $ 2,990,000 Sales Income from Olympic 0 $ 2,990,000 Cost of goods sold $ 2,056,200 Selling expenses Other expenses Income tax expense 348,000 195,000 137,920 $ 2,737,120 Profit $ 252,880 $ 2,246,280

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