Accounting Questions - Reporting Financial Performance

Question 1: Refer to Question 1.png, Calculate Net Income for the current year, show your work

The following are all changes in the account balances of Blue Spruce Led. 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 a partial statement of retained earnings illustrating the adjusted balance of retained earnings. Blossom Incorporated Statement of Retained Earnings (Partial) List of Accounts Assistance Used 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