NOTICE: USING IFRS FORMAT
Phantom Rock Corporation capital structure consists of 50,000 shares of common stock outstanding. At November 30, 2018 an analysis of the accounts and discussions with company officials revealed the following information: Sales $1,195,000 30,000 161,000 42,400 85,000 175,000 100,000 18,500 20,400 733,000 32,000 23,700 10,000 375,000 24,500 74,000 145,000 15,000 114,000 27,000 20,500 9,000 25,000 8,700 500,000 19,000 Loss on disposition of the retail division (net of tax) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Rent revenue Gain on sale equipment Cost of goods sold Unearned revenue Write-off of a patent Accrued interest payable Property Sales returns and allowances Patent Retained earnings, December 1, 2017 Bond interest expense Administrative expenses Dividends declared common shares Sales discounts Dividends declared preferred shares Loss on operations of the retail division (net of tax) Depreciation understatement due to an error in 2014 Plant and equipment Accounts payable Additional information: All of the above accounts had their normal debit or credit balances. This is a partial trial balance and therefore total debits and credits do not equal to zero (0). The company's income tax rate is 20%. Assume that all income items are fully taxable or deductible for income tax purposes. Required a) Prepare a multiple-step income statement using the IFRS format for Phantom Rock Corporation for the year ended November 30, 2018 [21 Marks] Prepare a retained earnings statement for the year ended November 30, 2018. b) [4 Marks] Phantom Rock Corporation capital structure consists of 50,000 shares of common stock outstanding. At November 30, 2018 an analysis of the accounts and discussions with company officials revealed the following information: Sales $1,195,000 30,000 161,000 42,400 85,000 175,000 100,000 18,500 20,400 733,000 32,000 23,700 10,000 375,000 24,500 74,000 145,000 15,000 114,000 27,000 20,500 9,000 25,000 8,700 500,000 19,000 Loss on disposition of the retail division (net of tax) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Rent revenue Gain on sale equipment Cost of goods sold Unearned revenue Write-off of a patent Accrued interest payable Property Sales returns and allowances Patent Retained earnings, December 1, 2017 Bond interest expense Administrative expenses Dividends declared common shares Sales discounts Dividends declared preferred shares Loss on operations of the retail division (net of tax) Depreciation understatement due to an error in 2014 Plant and equipment Accounts payable Additional information: All of the above accounts had their normal debit or credit balances. This is a partial trial balance and therefore total debits and credits do not equal to zero (0). The company's income tax rate is 20%. Assume that all income items are fully taxable or deductible for income tax purposes. Required a) Prepare a multiple-step income statement using the IFRS format for Phantom Rock Corporation for the year ended November 30, 2018 [21 Marks] Prepare a retained earnings statement for the year ended November 30, 2018. b) [4 Marks]
