Need help with this prob please!
Problem 4-12 Joe Schreiner, controller for Blue Spruce Company Inc., recently prepared the company's income statement and statement of changes in equity for 2017. Schreiner believes that the statements are a fair presentation of the company's financial progress during the current period, but he also admits that he has not examined any recent professional pronouncements on accounting BLUE SPRUCE COMPANY INC Income Statement For the Year Ended December 31, 2017 Sales revenue:s Less: Sales returns and allowances Net sales revenue Cost of goods sold: $370,000 16,040 353,960 $ 51,100 Inventory, January 1, 2017 Purchases Less: Purchase discounts Cost of goods available for sale Inventory, December 31, 2017 Cost of goods sold $193,000 2,510 190,490 241,590 42,080 199,510 Gross profit Selling expenses Administrative expenses Income before income tax Other revenues and gains 154,450 39,640 31,300 70,940 83,510 Unrealized gain on FV-OCI investments 33,400 37,400 154,310 46,293 $108,017 Dividends received Income tax Net income BLUE SPRUCE COMPANY INC. Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2017 $ 210,000 Retained earnings, January 1, 2017 Add: Net income for 2017 $108,017 Gain from sale of long-term investments 31,800 $139,817 Deduct: Loss on expropriation Correction of mathematical error (net of tax) 14,700 18,801 (33,501) 106,316 316,316 Retained earnings, December 31, 2017 Assume that Blue Spruce Company follows IFRS, and has a tax rate of 30%. Assume that investments are accounted for as FV-OCI investments with gains/losses recycled through net income. Prepare a statement of comprehensive income showing expenses by function. Ignore calculation of EPS (Round answers to 0 decimal places, e.g. 5,275. Round tax rate to 4 decimal places, e.g. 52.7525%.) BLUE SPRUCE COMPANY INC Statement of Comprehensive Income Prepare the retained earnings and accumulated other comprehensive income portion of the statement of changes in equity. Assume an opening balance of $110,000 in accumulated other comprehensive income. (Round answers to o decimal places, e.g.5,275.) BLUE SPRUCE COMPANY INC. Statement of Changes in Equity Retained Earnings Comprehensive Income Income Accumulated Other Comprehensive Balance January 1, as reported Correction of prior year error (net of tax) Balance January 1 restated Net income / (Loss) Unrealized gain on FV-OCI investment Balance December 31 *May be reclassified subsequently to net income or loss. Administrative Expenses Cost of Goods Sold Dividend Revenue Gain on Sale of Long-Term Investments Income Tax Expense Loss on Expropriation Sales Returns and Allowances Sales Revenues Selling Expenses Unrealized Gain on FV-OCI Investments Operating Income Other Expenses and Losses Income before Income Tax Net Income /(Loss) Other Revenues and Gains Other Comprehensive Income Comprehensive Income Net Sales Revenue Gross Profit / (Loss) Total Other Revenues and Gains Total Other Expenses and Losses
