CS-1 LO Kruma Company sells clothes and fashion accessories through its chain of retail stores. The shareholders' equity section of Kruma Company's statement of financial position as at December 31, 2020, shows the following Information Kruma Company Statement of Financial Position (partial) As at December 31, 2020 Shareholders' Equity Contributed Capital Preferred Shares, noncumulative, 5%, $100, 150,000 shares authorized, 24,000 shares issued and outstanding $2,400,000 Common Shares, unlimited shares authorized, 400,000 shares issued and outstanding 400,000 Total Contributed Capital 2,800,000 Retained Earnings 1,500,000 Total Shareholders' Equity 4,300,000 On January 28, 2021, Kruma discovered an accounting mistake made in 2020. Accrual of interest revenue was understated by $54,000 because interest receivable and interest revenue of $60,000 were mistakenly recorded as $6,000 During 2021, Kruma earned and incurred the following revenue and expenses (excluding income tax expenses). Kruma's tax rate is 30% Sales Revenue Interest Revenue Unrealized Gain on Trading Investments Gain on Sale of Discontinued Operations Lassan Sale of Ascat from Continuing Onerations $1,785,000 45,000 12,000 90,000 16000 > Total Contributed Capital Retained Eamings Total Shareholders' Equity 2,800,000 1.500.000 4,300,000 On January 28, 2021, Kruma discovered an accounting mistake made in 2020. Accrual of interest revenue was understated by $54,000 because Interest receivable and interest revenue of $60,000 were mistakenly recorded as $6,000. During 2021, Kruma earned and incurred the following revenue and expenses (excluding income tax expenses). Kruma's tax rate is 30% Sales Revenue $1,785,000 Interest Revenue 45,000 Unrealized Gain on Trading Investments 12,000 Gain on Sale of Discontinued Operations 90,000 Loss on Sale of Assets from Continuing Operations 16,000 Loss on Foreign Currency Translation 30,000 Loss from Operating Discontinued Operations 200,000 Cost of Goods Sold 966,000 Selling Expenses 250,000 Administrative Expenses 253,000 Interest Expense 1,000 On October 1, 2021, Kruma issued an additional 20,000 common shares for $20,000. There was no other change in the number of common or preferred shares. Kruma paid $120,000 dividends to preferred shareholders, but no dividend to common shareholders in 2021. The preferred shares are not convertible. The company does not have any outstanding securities that can be converted into common shares. + Page view A Read aloud | 00 Add text IV Draw Highlight Corporations: The Financial Statements Chapter 6 Required a) Record the journal entry to correct the mistake related to the understatement of interest receivable and interest revenue in 2020 Date Account Title and Explanation Debit Credit b) Prepare an income statement under ASPE for Kruma for the year ended December 31, 2021, -6C Clear O H hip + ID Page view A Read aloud 0 Add text V Draw Highlight Chapter Corporation: The Financial Statements Prepare a statement of comprehensive Income by function under IFRS for Kruma for the year ended December 31,2021. Present the base and diluted earnings per share calculated based on net income foss) at the bottom of the statement of comprehensive income. Do not separate earnings per share into continuing operations and discontinued operations. Also show detailed calculations of weighted average number of common shares and earnings per share ! 3 -6C Clear hap 30 - + E Page view A Read aloud 0 Added VD Highlight Eras Corporation: The Financial Statements d) Prepare a statement of retained earnings under ASPE for Kruma for the year ended December 31, 2021 Chapter el Prepare a statement of changes in equity under IFRS for Kruma for the year ended December 31, 2021 o RE E -6C Clear hp 6 7 8 9 0 + E gir A Head oud Add text IV Draw Highlight Prepare the shareholders' equity section of Kruma's balance sheet under ASPE as at December 31, 2021 ORI E HD -6C Clear AG & 6 7 8 9 Got! A Pageview A Head aloud 0 Add text V Draw Highlight Chapter Corporation The Rancial Statements g) Prepare the shareholders' equity section of Kruma's statement of financial position under IFRS as at December 31, 2021 h in the table below, calculate the given ratios for Kuna's common shares as at December 31, 2021. Assume that the market price of Kuma's common shares on that day is equal to $4.50 Book Value per Common Shares TT g -6C Clear (hp 5 6 7 8 9 Prince Single/Download Study 20tom Chapter 206 pdf Poplications + Head aloud Auld text V Draw Eine In the table below. calculate the given ratios forumas common shares as at December 31, 2021. Assume that the market price of Kumas.common shares on that day is equal to $4.50 Book Value per Common Shares Dividend Yield Price-Earrings Ratio O -6C Gear 5 6 7 8 00 9 T Y U OP + ID Page View A Read aloud 0 Add text V Draw Highlight Date 2021 Actual Number of Shares Fraction of Year Weighted Average Number of Shares Storage Free ups Your com Visit stora o i E -6C hp