Presented in alphabetical order, the following data are from the accounting records of Stinson Corporation, a public

Question:

Presented in alphabetical order, the following data are from the accounting records of Stinson Corporation, a public company, at April 30, 2021:

Accounts payable ................................................... $ 65,000
Accounts receivable .................................................. 48,000
Accumulated depreciation—equipment ................ 72,000
Accumulated other comprehensive income .......... 18,000
Bonds payable, due 2025 ....................................... 150,000
Cash ........................................................................... 100,480
Common shares (no par value, unlimited 

authorized, 200,000 issued) ................................... 300,000
Depreciation expense ............................................... 27,500
Dividend revenue ...................................................... 11,000
Equipment ................................................................ 275,000
Income tax expense .................................................. 82,860
Income tax payable ................................................... 25,000
Interest expense .......................................................... 7,500
Interest receivable ...................................................... 1,680
Interest revenue .......................................................... 3,360
Investment in associate ......................................... 170,000
Investment income or (loss) ...................................... 3,000
Investments at amortized cost, bonds due 2023 ... 24,000
Investments at FVTOCI—equity ............................. 220,000
Investments at FVTPL—bonds ................................. 61,000
Investments at FVTPL—equity ................................. 15,000
OCI—holding gain or (loss), net of $3,600 tax ....... (12,000)
Rent expense ............................................................. 79,000
Retained earnings ................................................... 161,660
Salaries expense ..................................................... 235,000
Service revenue ....................................................... 550,000


Instructions

Prepare a statement of comprehensive income and balance sheet at April 30, 2021.


Taking It Further

Calculate return on equity for Stinson Corporation on April 30, 2021. Total shareholders’ equity on April 30, 2020, was $510,400. Comment on Stinson’s operating performance assuming that the industry average return on equity is 18%.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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