The draft adjusted trial balance of Alberta Enterprises Ltd., a publicly quoted company, at December 31, 2021, is as follows:

					Debits		Credits
					$		$
Cash					410,000
Accounts receivable					1,030,000
Allowance for expected credit losses							17,000
Inventory					1,374,000
Buildings					2,080,000
Accumulated depreciation—buildings							304,000
Investments					1,000,000
Bonds payable (due in three years)							1,200,000
Accounts payable							290,000
Dividends payable							72,000
Income tax payable							192,000
Common shares							600,000
Retained earnings balance 1 January 2021							509,000
Accumulated other comprehensive income 1 January 2021							370,000
Sales revenue							17,870,000
Cost of goods sold					9,518,000
Selling & Administrative expenses					5,520,000
Interest expense					422,000
Gain on disposal of land							120,000
Dividends declared					190,000
Totals					21,544,000		21,544,000

Notes:

1. Depreciation for 2021 has already been recorded and included in Selling & Administrative expenses.

2. Cash includes prepaid insurance of $9,000, and a bank overdraft of $10,000 has been deducted.

3. Inventory does not include goods costing $10,000 shipped out on consignment. Receivables of $10,000 were recorded on these goods.

4. Investments include:

a. Investments in common shares treated as FV-NI $306,000 (at cost), market value at December 31, 2021 $325,000

b. Long-term investments treated as FV-OCI $554,000 (at cost), market value at December 31, 2021 $540,000

c. Franchises of $140,000 purchased on December 31, 2021.

Required and Additional information:

(a) Calculate the Net Income for the year ended based on the trial balance above and the additional information provided in the notes above. (No need to prepare a proper income statement, just the net income calculation)

(b) Prepare a classified Statement of Financial Position as of December 31, 2021

Answer rating: 100% (QA)

a Net Income Sales Revenue Cost of Goods Sold Selling Administrative Expenses Interest Expense Gain on Disposal of Land Dividends Declared 17870000 95... View the full answer