Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Presented below is information which relates to Ivanhoe Company, a Canadian public corporation traded on the Toronto Stock Exchange, for 2020. Net income $444,000 Retained

Presented below is information which relates to Ivanhoe Company, a Canadian public corporation traded on the Toronto Stock Exchange, for 2020.

Net income $444,000
Retained earnings, January 1, 2020 815,000
Cash dividends declared on common shares 33,000
Correction of calculation error depreciation understatement in 2016 (pre-tax) 461,000
Gain on FV-OCI investments (net of tax) 206,000
Proceeds from issuance of Ivanhoe common shares 61,000
Accumulated other comprehensive income, January 1, 2020 14,500

On January 1, 2020, Ivanhoe had 21,000 common shares outstanding with a capital balance of $525,000. During the year, Ivanhoe Company issued an additional 2,000 common shares. Prepare in good form a statement of shareholders equity for the year ended December 31, 2020. Ivanhoes income tax rate is 20%. (Enter expenses and losses using either a negative sign preceding the number e.g. -25 or parentheses e.g. (25).)

Ivanhoe Company Statement of Shareholders' Equity December 31, 2020For the month ended December 31, 2020For the year ended December 31, 2020
Common Shares Number Common Shares Retained Earnings Accumulated Other Comprehensive Income Total
Issuance of sharesBeginning balance as adjustedNet incomeOther comprehensive incomeDividends declaredCorrection of 2016 depreciation understatement, net of taxEnding balanceBeginning balance $ $ $ $
Other comprehensive incomeIssuance of sharesNet incomeDividends declaredCorrection of 2016 depreciation understatement, net of taxBeginning balance as adjustedEnding balanceBeginning balance
Beginning balanceNet incomeBeginning balance as adjustedOther comprehensive incomeIssuance of sharesDividends declaredEnding balanceCorrection of 2016 depreciation understatement, net of tax
Ending balanceIssuance of sharesBeginning balanceCorrection of 2016 depreciation understatement, net of taxNet incomeOther comprehensive incomeDividends declaredBeginning balance as adjusted
Correction of 2016 depreciation understatement, net of taxDividends declaredNet incomeEnding balanceOther comprehensive incomeBeginning balanceIssuance of sharesBeginning balance as adjusted
Beginning balanceNet incomeEnding balanceCorrection of 2016 depreciation understatement, net of taxDividends declaredIssuance of sharesOther comprehensive incomeBeginning balance as adjusted
Beginning balanceBeginning balance as adjustedDividends declaredOther comprehensive incomeNet incomeIssuance of sharesCorrection of 2016 depreciation understatement, net of taxEnding balance
Beginning balanceDividends declaredCorrection of 2016 depreciation understatement, net of taxBeginning balance as adjustedOther comprehensive incomeIssuance of sharesNet incomeEnding balance $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

6th edition

1292063467, 978-1292063461

More Books

Students also viewed these Accounting questions

Question

HOW CAN MANAGEMENT MAKE THE BEST USE OF A SCARCE RESOURCE?LO.1

Answered: 1 week ago

Question

WHAT FACTORS ARE RELEVANT IN MAKING DECISIONS AND WHY? LO.1

Answered: 1 week ago