Accounting Questions

Question 1: Refer to Chap 4- Question 1.png, Calculate Net Income for the current year.

The following are all changes in the account balances of Blue Spruce Ltd. during the current year, except for Retained Earnings: Increase Increase [Decrease [Decrease Cash $90,000 Accounts payable $(71,900 ) Accounts receivable (net) 65,000 Unearned revenue 25,000 Inventory 163,000 Bonds payable 77.400 Investments in FV-NI securities (28,000 ) Common shares 128,000 Contributed surplus 70,900 Calculate the net income for the current year, assuming that there were no entries in the Retained Earnings account except for net income and a dividend declaration of $19.700, which was paid in the current year. Net income for the current yearThe shareholders' equity section of Novak Corporation as at December 31, 2020, follows: 10% cumulative preferred shares, 100,000 shares authorized, 69.000 shares outstanding $4,700,000 Common shares, 10 million shares authorized and issued 10,000,000 Contributed surplus 11,000,000 25,700,000 Retained earnings 170,000,000 $195,700,000 Net income of $24 million for 2020 reflects a total effective tax rate of 25% Included in the net income figure is a loss of $17 million (before tax) relating to the operations of a business segment that is to be discontinued. Calculate earnings per share information as it should appear in the financial statements of Novak Corporation for the year ended December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.) Earnings per share Continuing Operations $ Discontinued Operations Net Income / (Loss)Prepare the retained earnings section of the statement of changes in equity for 2020. (List items that increase retained earnings first following the adjustment of prior years.) Swifty Corp. Excerpt from Statement of Changes In Equity For the Year Ended December 31, 2020 Retained Earnings Balance, January 1, as reported Correction for Overstatement of Net Income In Prior Perlod (Net of Tax) Retained Earnings Balance, January 1, as restated Add Net Income / (Loss] Less Dividends Declared Retained Earnings Balance, December 31 v eTextbook and Media Prepare the journal entry to record the depreciation expense omitted by mistake in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Retained Earnings Income Tax Payable / Receivable Accumulated Depreciation - BuildingsStatement of Financial Performance For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit/ [Less) Operating Expenses V Selling Expenses Administrative Expenses Income from Operations Other Revenues and Galna Dividend Revenue Interest Income Other Expenses and Loanss Loss on Inventory Due To Decline In Net Reallzable Value V Loss ondisposal of Equipment Loss from Expropriation Income before Income Tax Income Tax Expense v Net Income / (Loss] Other Comprehensive Income Items that will not be reclassified subsequently to net income or Unrealized Gain on FV-OCI Investments [Net Of Income Tax) Comprehensive Income SThe following is information for Swifty Corp. for the year ended December 31, 2020: Sales revenue $1 400,000 Loss on inventory due to decline in net realizable value $82,000 Unrealized gain on FV-OCI equity investments 46,000 Loss on disposal of equipment 40,000 Interest income 8.000 Depreciation expense related to buildings omitted by mistake in 2019 54.000 Cost of goods sold 840,000 Retained earnings at December 31, 2019 960,000 Selling expenses 70,000 Loss from expropriation of land 64,000 Administrative expenses 52,000 Dividends declared 44.000 Dividend revenue 21,000 The effective tax rate is 30% on all items. Swifty prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.Blossom Incorporated decided to change from the FIFO method of've wing inventory to the weighted average method in July 2020 to present more relevant information for its financial statement users. The cumulative effect on prior years off retrospective application of the now inventory costing method was determined to be $15,000 met of $4,000 tax. As prices were decreasing, cost of goods sold is lower and ending inventory higher for the proceding period. Retained earnings on January 1, 2020 was $241,000. Blossom follows ASPE. Prepare a partial statement of retained earnings illustrating the adjusted balance of retained earnings. Blossom Incorporated Statement of Retained Earnings (Partial) eTextbook and Media List of Accounts Prepare the adjusting journal entry for the change in the accounting policy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit