Exercise 4-10 - Google Chrome X edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni *Exercise 4-10 The following is information for Novak Corp. for the year ended December 31, 2017: Net sales revenue $1,420,000 Loss on inventory due to decline in net realizable value (NRV) $70,000 Unrealized gain on FV-OCI investments 46,000 Loss on sale of equipme 45,000 Interest income 9,000 Depreciation e expense related to buildings omitted by mistake in 2016 56,000 Cost of goods sold 852,000 Retained earnings at December 31, 2016 50,000 Selling expenses 71,000 Loss-other (due to expropriation of land) 57,000 Administrative expenses 52,000 Dividends declared 46,000 Dividend revenue 15,000 The effective tax rate is 25% on all items. Novak prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/losses on FV-OCI investments are recycled through net income. Prepare a multiple-step statement of comprehensive income for 2017, showing expenses by function. Ignore calculation of EPS. Novak Corp. Statement of Comprehensive Income For the Year Ended Sales Revenue Net Sales Revenue 1,420,000 Cost of Goods Sold 852,000 Gross Profit / (Loss) 568,000 Operating Expenses Selling Expenses $ 71,000 Administrative Expenses $2,000 123,000 Income from Operations 445,000 [Other Revenues and Gain Dividend Revenue 15,000 Interest Income 9,000 24,000 469,000 [Other Expenses and Loss Loss on Inventory Due To 70,000 Loss on Sale of Equipmer 45,000 Loss from Expropriation 57,000 172,000 Income before Income Ta 297,000 Income Tax Expense 74,250 Net Income / (Loss) 222,750 [other Comprehensive Inc Unrealized Gain on FV-OC 34,500 Comprehensive Income $ 257,250 Prepare the retained earnings section of the statement of changes in equity for 2017. (List items that increase retained earnings first following the adjustment of prior years.) Type here to search WileyPLUS - Goo. Exercise 4-10 - G. Settings ENG 4:59 PM 10/5/2020 FEExercise 4-10 - Google Chrome X edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Selling Expenses $71,000 Administrative Expenses 52,000 23,000 Income from Operations 445,000 [Other Revenues and Gain Dividend Revenue 15,000 Interest Income 9,000 24,000 469,000 Other Expenses and Loss 's on Inventory Du 0,000 Loss on Sale of Equipmer 45,00 Loss from Expropriation 57,000 172,000 Income before Income Ta 297,000 Income Tax Expense 74,250 Net Income / (Loss) 222,750 Other Comprehensive Inc Unrealized Gain on FV-OC 34,500 Comprehensive Income 257,250 Prepare the retained earnings section of the statement of changes in equity for 2017. (List items that increase retained earnings first following the adjustment of prior years.) Novak Corp. Excerpt from Statement of tement of Changes in Equity For the Year Ended Decer Retained Earnings Balanc 950,000 [Correction for Overstaten 42,000 Retained Earnings Balanc 908,000 Add Net Income / (Loss) 222,750 1,130,750 Less Dividends Declared 46,000 Retained Earnings Balanc $1,084,750 Prepare the journal entry to record the depreciation expense omitted by mistake in 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Retained Earnings 42,000 Income Tax Payable / Red 14,000 Accumulated Depreciation 56,000 Question Attempts: 0 of 5 used Type here to search Screenshots WileyPLUS - . Exercise 4-10 . Settings ENG 5:03 PM 10/5/2020 FE