Ayayai Inc. follows IFRS and is adjusting and correcting its books at the end of 2020. In reviewing its records, the following information has been compiled: 1. 2 In 2020, the depreciation method on plant assets should be changed from sum-of-the-years-digits to the straight-line method due to a change in pattern of usage. The assets were purchased at the beginning of 2019 for $66.600 with an estimated useful life of four years and no residual value. Ayayai has already recorded 2020 depreciation expense of $19.980 related to the assets, using the sum-of-the-years-digits method. Ending inventory for 2019 was overstated by $14,800; ending inventory for 2020 is correctly stated. The adjusted trial balance at December 31, 2018, includes the following amounts: Cash $28,120; Inventory $82,880 Accounts Payable $35,520; Retained Earnings $53.280. Dividends of $22,200 and $18,500 were declared and paid on December 31, 2020, and December 31, 2019, respectively, Share capital of $22.200 consists of 14,800 common shares outstanding since the company's inception 3. 4. 5. Ayayai's statement of financial position and income statement are as follows at December 31, 2019 and 2020, before any corrections related to the information above. The December 31, 2020 statements are in draft form only and the 2020 accounts have not yet been closed. AYAYAI INC. Statement of Financial Position As at December 31, 2020 Assets 2020 2019 Cash $44,400 $25,160 Inventory 79.180 94.720 Plant assets, net 19,980 39,960 Total assets $143,560 $159,840 Liabilities and Shareholders' Equity Accounts payable $12,580 $45,140 Share capital 22,200 22,200 Retained earnings 108,780 92,500 Total liabilities and shareholders' equity $143,560 $159,840 108.780 Retained earnings Total liabilities and shareholders equity 92,500 $143,560 $159,840 AYAYAI INC Income Statement Year Ended December 31, 2020 2020 2019 Sales $251,600 $199,800 Cost of goods sold 148,000 105,080 Gross profit 103,600 94.720 Operating expenses 65,120 37,000 Net income $38.480 $57.720 Prepare the comparative statement of changes in equity for 2020. (Do not leave any answer field on. Enter for amounts Enter negative amounts using elther a negative sin preceding the numberes-45 or parentheses (451 YAYAI INC atement of Changes in Equity or the Year Ended December 31, 2020 Share Capital Retained Earnings Total 5 . Prepare the comparative statement of financial positions December 31, 2020. Lists in order of Do not have any answereld blank Enter for amounts AYAYAI INC Statement of Financial Position As at December 31, 2020 As at December 31 2019 Restated teenote XX Asat January 1, 2019 Assets Labtes and Shareholders Equity
