Blue Spruce 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 $106,200 with an estimated useful life of four years and no residual value. Blue Spruce has already recorded 2020 depreciation expense of $31,860 related to the assets, using the sum-of-the-years'-digits method. Ending inventory for 2019 was overstated by $23,600; ending inventory for 2020 is correctly stated. The adjusted trial balance at December 31, 2018, includes the following amounts: Cash $44,840; Inventory $132,160; Accounts Payable $56,640; Retained Earnings $84,960. Dividends of $35,400 and $29,500 were declared and paid on December 31, 2020, and December 31, 2019, respectively. Share capital of $35,400 consists of 23,600 common shares outstanding since the company's inception. 3. 4. 5. Blue Spruce'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. BLUE SPRUCE INC. Statement of Financial Position As at December 31, 2020 Assets Cash Inventory Plant assets, net 2020 $70,800 126,260 31,860 $228,920 2019 $40,120 151,040 63,720 $254,880 Total assets Liabilities and Shareholders' Equity Accounts payable Share capital Retained earnings Total liabilities and shareholders' equity $20,060 35,400 173,460 $228,920 $71,980 35,400 147,500 $254,880 BLUE SPRUCE INC. Income Statement Year Ended December 31, 2020 2020 Sales $401,200 Cost of goods sold 236,000 Gross profit 165,200 Operating expenses 103,840 Net income $61,360 2019 $318,600 167,560 151,040 59,000 $92,040 Prepare the comparative income statement for 2020. (Round earnings per share to 2 decimal places, e.g. 52.75.) BLUE SPRUCE INC. Income Statement For the Years Ended December 31 2019 Restated see note XX 2020 $ $ $ $ $ Prepare the comparative statement of changes in equity for 2020. (Do not leave any answer field blank. Enter O for amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BLUE SPRUCE INC. Statement of Changes in Equity For the Year Ended December 31, 2020 Share Capital Retained Earnings $ $ :
