Q$-1.($Chapter$-3)$: A$3-3$ Income Statement Format:

The following items were taken from the adjusted trial balance of the Bremeur Corporation on $31$ December $20\backslash$times $5.$ Assume an average $20\%$ income tax on all items $($including the divestiture loss$).$ The accounting period ends $31$ December. All amounts given are pretax and are subject to the same income tax rate. Bremeur had $30,000$ shares outstanding at the beginning of the year. On $31$ August $20\backslash$times $5,$ an additional $9,000$ shares were issued; at the end of $20\backslash$times $5,39,000$ shares were outstanding.

Required: $(14$ Marks$)$ Prepare a multi$-$step Statement of Comprehensive Income, in good form, on functional basis.

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$$Q$-2.($Chapter $4)$: A$4-12$ Error Correction

In May $20\backslash$times $5,$ the newly appointed controller of Butch Baking Corporation conducted a thorough review of past accounting, particularly of transactions that exceeded the company's normal level of materiality. As a result of his review, he instructed the company's chief accountant to correct the error below:

In $20\backslash$times $2,$ the company made extensive improvements to the baking process and installed a substantial amount of new equipment. The entire cost of the process improvements and equipment was accidentally charged to income as restructuring expense in $20\backslash$times $2.$ However, the equipment should have been capitalized and added to the factory equipment account. The cost of the equipment was $$1,200,000.$ Butch depreciates its factory equipment on the straight$-$line basis over $10$ years. A full year's depreciation is charged in the year that equipment is acquired. The company$$s tax rate is $30\%.$Additional information: The Company$$s net income before taxes was $$3,500,000$ for $20$X$2$ and $$4,400,000$ for $20$X$3.$

Required: $(8$ Marks$)$ Calculate the impact on Net Income $($after taxes$)$ for years, $20$X$2$ and $20$X$3.$

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$$Q$-3.($Chapter$-7)$ A$7-4$: Accounts Receivable$$Allowances:

At $31$ December $20$X$8,$ Small Ltd$.$ reported gross accounts receivable of $$2,481,800.$ Investigation showed the following:

$$ The credit balance in the allowance for doubtful accounts was $$182,400$ after write$-$offs for the year but before any bad debt adjustment. Bad debt expense is based on a percentage of receivables. Based on the latest available facts, $$280,000$ will not be collected due to collection issues.

$$ Terms of $1/10,$ n$/30$ were granted to all customers. Accounts receivable were recorded gross, and the discounts taken were recorded when taken by the customers in a discounts account, reported contra to the sales account. Estimated discounts inherent in the closing accounts receivable balance were $$30,600.$ The allowance for sales discounts account was established at $$29,800$ last year and has not been adjusted since.

Required: $(8$ Marks$)$

$$ Prepare year$-$end adjusting entries with respect to accounts receivable.

$$ Show how the net accounts receivable would appear on the statement of financial position on $31$ December $20$X$8.$