Below is a list of accounts and balances for FlipFlop Inc. for the year ending December 31,
Question:
Below is a list of accounts and balances for FlipFlop Inc. for the year ending December 31, 2023. All balances are in thousands of dollars. FlipFlop Inc. follows IFRS. Assume a tax rate of 25%. Exclude the presentation of earnings per share for this question.
Account Title | Balance |
Accounts Payable | $9,400 |
Accounts Receivable | $13,000 |
Accumulated Depreciation | $1,400 |
Advertising Expense | $1,400 |
Cash | $20,300 |
Cash Dividends | $3,800 |
Common Shares | $8,400 |
Cost of Goods Sold | $19,960 |
Depreciation Expense-Office Equipment | $110 |
Depreciation Expense-Store Equipment | $600 |
Gain on Foreign Currency Translation Adjustments | $110 |
Gain on Sale of Discontinued Operations | $1,600 |
Income from Operating Discontinued Operations | $8,100 |
Interest Expense | $1,200 |
Merchandise Inventory | $17,200 |
Miscellaneous Administrative Expenses | $440 |
Notes Payable | $24,000 |
Office Salaries Expense | $1,200 |
Prepaid Insurance | $2,000 |
Property, Plant and Equipment | $26,100 |
Rent Expense-Office | $500 |
Rent Expense-Retail | $1,180 |
Retained Earnings (beginning balance) | $15,955 |
Sales Salaries Expense | $2,200 |
Sales Discounts | $1,000 |
Sales Returns and Allowances | $660 |
Sales Revenue | $49,900 |
Unearned Revenue | $1,300 |
Notes:
Unlimited common shares are authorized and 2,910 have been issued and are currently outstanding.
The notes payable is payable over 5 years and $4,800 will be paid by December 31, 2024.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number.
Do not use the negative sign for any values.
a) Prepare a statement of comprehensive income by function for the year ended December 31, 2023.
FlipFlop Inc. | |
Statement of Comprehensive Income | |
For the Year Ended December 31, 2023 | |
Sales Revenue (net) | Answer |
Cost of Goods Sold | Answer |
Gross Profit | Answer |
Selling Expenses | Answer |
Administrative Expenses | Answer |
Operating Profit | Answer |
Finance Costs | Answer |
Profit before Income Tax | Answer |
Income Tax Expense | Answer |
Profit for the Year from Continuing Operations | Answer |
Profit for the Year from Discontinued Operations | Answer |
Profit for the Year | Answer |
Other Comprehensive Income, Net of Tax | |
Gain on Foreign Currency Translation Adjustments (net of tax) | Answer |
Total Comprehensive Income | Answer |
b) Prepare a statement of changed in equity for the year ended December 31, 2023. There was no opening balance in the accumulated other income account and FlipFlop Inc. did not issue any new common shares in the fiscal year ended December 31, 2023.
FlipFlop Inc. | ||||
Statement of Changed in Equity | ||||
For the Year Ended December 31, 2023 | ||||
Common Shares | Retained Earnings | Reserves | Total Equity | |
Opening Balance | Answer | Answer | Answer | |
Profit for the Year/Net Income | Answer | Answer | ||
Other Comprehensive Income | ||||
Foreign Currency Translation Adjustments | Answer | Answer | ||
Total Comprehensive Income | Answer | Answer | Answer | |
Transactions with Owners | ||||
Dividends on Common Shares | Answer | Answer | ||
Total Transactions with Owners | Answer | Answer | ||
Closing Balance | Answer | Answer | Answer | Answer |
c) Prepare a statement of financial position as at December 31, 2023.
FlipFlop Inc. | ||
Statement of Financial Position | ||
As at December 31, 2023 | ||
Assets | ||
Long-Term Assets | ||
Property, Plant and Equipment (net) | Answer | |
Total Long-Term Assets | ||
Current Assets | ||
Prepaid Insurance | Answer | |
Merchandise Inventory | Answer | |
Accounts Receivable | Answer | |
Cash | Answer | |
Total Current Assets | Answer | |
Total Assets | Answer | |
Equity Attributable to Owners | ||
Common Shares, unlimited authorized, Answer issued | Answer | |
Retained Earnings | Answer | |
Reserves | Answer | |
Total Equity Attributable to Owners | Answer | |
Liabilities | ||
Long-Term Liabilities | ||
Notes Payable, Long-Term Portion | Answer | |
Total Long-Term Liabilities | Answer | |
Current Liabilities | ||
Accounts Payable | Answer | |
Unearned Revenue | Answer | |
Notes Payable, Current Portion | Answer | |
Total Current Liabilities | Answer | |
Total Liabilities | Answer | |
Total Equity and Liabilities | Answer |
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy