The following account balances were included in the trial balance of Reid Corporation at June 30, 2017:

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The following account balances were included in the trial balance of Reid Corporation at June 30, 2017:

The following account balances were included in the trial balance

During 2017, Reid incurred production salary and wage costs of $710,000, consumed raw materials and other production supplies of $474,670, and had an increase in work-in-process and finished goods inventories of $112,900. The Retained Earnings account had a balance of $292,000 at June 30, 2017, before closing. There are 180,000 common shares outstanding. Assume Reid has elected to adopt IFRS. (Hint: Production payroll and materials costs reduced by the increase in ending work-in-process and finished goods inventories = the cost of goods sold.)
Instructions
(a) Prepare an income statement for the year ended June 30, 2017, using the multiple-step format and showing expenses by function.
(b) Prepare the retained earnings portion of the statement of changes in equity for the year ended June 30, 2017.
(c) Prepare an income statement for the year ended June 30, 2017, using the single-step format and showing expenses by nature.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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