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Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the...

Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:

Accounts receivable

$102,000

Accrued interest payable

1,000

Dividend revenue

9,000

Sales revenue

600,000

Purchase discounts

9,000

Purchases

360,000

Accounts payable

30,000

Loss from fire (net of $7,000 tax)

21,000

Selling expenses

64,000

Common shares (20,000 issued; no change during 2020)

200,000

Accumulated depreciation

90,000

Long-term note payable (due Oct 1, 2024)

100,000

Inventory, Jan 1, 2020

76,000

Inventory, Dec 31, 2020

62,500

Supplies inventory

40,000

Unearned service revenue

3,000

Land, at cost (fair value is $450,000).

370,000

Cash

60,000

Franchise

100,000

Retained earnings, Jan 1, 2020

135,000

Interest expense

8,500

Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax) prior to 2020

(18,000)

General and administrative expenses

80,000

Dividends declared and paid

15,000

Allowance for doubtful accounts

5,000

Loss from discontinued operation (before tax)

20,000

Machinery and equipment

225,000

Unless indicated otherwise, you may assume a 25% income tax rate.

General and administrative expenses include depreciation.

Peanut has chosen to account for its land at fair value but the bookkeeper does not understand what to do so he has kept the land’s recorded value at cost.

There are no preferred shares issued.

Instructions

a. Prepare, in good form, a multiple-step comprehensive income statement.

b. Prepare, in good form, the retained earnings portion of the statement of changes in equity.

Expert Solution

ekkarill92 answered 2 years ago

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