Question

In: Accounting

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.

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Bill-Ross Corporation is a private corporation using ASPE. At July 31, 2019, an analysis of the...

Bill-Ross Corporation is a private corporation using ASPE. At July 31, 2019, an analysis of the accounts and discussions with company officials included the following account balances and other information: Supplies inventory 40,000 Purchase discounts 9,000 Accounts payable 30,000 Dividends declared and paid 16,000 Loss from fire (net of $4,000 tax) 12,000 Accounts receivable $102,000 Selling expenses 46,000 Common shares (20,000 issued; no change during 2017) 200,000 Accumulated depreciation 90,000 Long term note payable (due Oct 1, 2021) 100,000 Inventory,...

The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.

The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.The following statement has been provided:Sales$895,000Cost of sales$450,000General and administrative expenses225,000Research and development expenditures75,000Operating income$145,000Other income35,000Net income before taxes180,000Provision for income taxes – current and future40,000Net income after taxes$140,000You have been provided some notes on the above information:The information in the following notes has already been reflected in the above income statement.Amortization expense recorded in the financial statements $25,000Landscaping costs re:...

On December 31, 2020, an analysis of the accounts for a company reveals the following: $100,000...

On December 31, 2020, an analysis of the accounts for a company reveals the following: $100,000 loss on disposal of discontinued operations, before tax $6,000 gain on sale of investments, before tax $10,000 depreciation expense understatement in 2018 due to error, before tax $20,000 cumulative understatement of net income of prior years from changing inventory valuation method in 2020, before tax $168,000 income from operations, before tax $4,000 dividends declared The applicable income tax rate is 40% for all tax-related...

Pearl Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pearl’ financial...

Pearl Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pearl’ financial records indicated the following information related to the company’s defined benefit pension plan: Defined Benefit Obligation $3,714,000 Pension Plan Assets 3,714,000 On July 1, 2020, Pearl acquired the operations of Trap Ltd. As one of the conditions of the purchase, Pearl agreed that Trap’s employees would be included in Pearl’s defined benefit pension plan, and would be granted credit for the past service of...

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS...

At the end of the December 31 2016 fiscal year, Yin trucking corporation which follows IFRS 16, negotiated and closed a long term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were erected to the company’s specifications on land owned by the company. On January 1 2017, Yin trucking corporation took possession of the leased properties and made a cash payment of 1,048,00$. Although the useful life of each terminal is 40 years, the non...

The statement of financial position of Delacosta Corporation as at December 31, 2020, is as follows:...

The statement of financial position of Delacosta Corporation as at December 31, 2020, is as follows: DELACOSTA CORPORATION Statement of Financial Position December 31, 2020 Assets Goodwill (Note 1) $70,000 Buildings (Note 2) 1,640,000 Inventory 312,100 Investments—trading (Note 3) 100,000 Land 950,000 Accounts receivable 170,000 Investments in shares (FV-OCI) (Note 4) 87,000 Cash 175,900 Assets allocated to trustee for plant expansion Cash 120,000 Treasury notes, at cost and fair value 138,000 $3,763,000 Equities Notes payable (Note 4) $600,000 Common shares,...

The unadjusted trial balance of Imagine Ltd., a private company following ASPE, at December 31, 2020...

The unadjusted trial balance of Imagine Ltd., a private company following ASPE, at December 31, 2020 is as follows: Debit Credit Cash $10,850 Accounts receivable 56,500 Allowance for doubtful accounts $750 FV-NI investments 8,600 Inventory 58,000 Prepaid insurance 2,940 Prepaid rent 13,200 FV-OCI investments 14,000 Bond investment at amortized cost 18,000 Land 10,000 Equipment 104,000 Accumulated depreciation—equipment 18,000 Accounts payable 9,310 Bonds payable 50,000 Common shares 100,000 Retained earnings 103,260 Sales revenue 223,310 Rent revenue 10,200 Purchases 170,000 Purchase discounts...

Presented below is the trial balance of Cullumber Corporation at December 31, 2020. Debit...

Presented below is the trial balance of Cullumber Corporation at December 31, 2020. Debit Credit Cash $ 201,010 Sales $ 8,104,270 Debt Investments (trading) (at cost, $145,000) 157,270 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 303,010 Equity Investments (long-term) 281,010 Notes Payable (short-term) 94,270 Accounts Payable 459,270 Selling Expenses 2,004,270 ...

The Total Liabilities for Ozium Corporation as of the Balance Sheet date of December 31, 2020...

The Total Liabilities for Ozium Corporation as of the Balance Sheet date of December 31, 2020 are: Salaries & Wages Payable 5,500 Long-Term Debt 300,000 ($250,000 is due for payment in 2021) Notes Payable 750,000 ($250,000 is due for payment after December 31, 2021) Unearned Revenue 16,500 Accounts Payable 25,000 In addition, the company is involve in two lawsuits that are expected to be closed by March 31, 2021. The first lawsuit is for $150,000 and...

An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the...

An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the following: Accounts Receivable Number of Days Outstanding Estimated %Uncollectible 2021 2020 0–30 days 3% 126,000 155,000 31–60 days 7% 31,500 77,500 61–90 days 13% 63,000 46,500 Over 90 days 40% 94,500 31,000 Total $315,000 $310,000 Additional information: 1. At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,200. 2. In 2021, $26,700 of accounts was written off...

Subjects