QUESTION #1

The following is information for Culver Corp. for the year ended December 31, 2020: Sales revenue $1,300,000 Loss on inventory due to decline in net realizable value $81,000 Unrealized gain on FV-OCI equity 42,000 Loss on disposal of equipment 40,000 investments Interest income 8,000 Depreciation expense related to buildings omitted by 51,000 mistake in 2019 Cost of goods sold 780,000 Retained earnings at December 31, 2019 990,000 Selling expenses 65,000 Loss from expropriation of land 56,000 Administrative expenses 48,000 Dividends declared 41,000 Dividend revenue 25,000 The effective tax rate is 25% on all items. Culver prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.Culver Corp. Statement of Financial Performance Sales Revenue Cost of Goods Sold Net Income / (Loss)Items that will not be reclassified subsequently to net income or loss:v eTextbook and Media * Your answer is incorrect. Prepare the retained earnings section of the statement of changes in equity for 2020. (List items that increase retained earnings first following the adjustment of prior years.] Culver Corp. Excerpt from Statement of Changes in EquityPrepare the journal entry to record the depreciation expense omitted by mistake in 2019. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditInformation for 2020 follows for Ayayai Corp.: Retained earnings, January 1, 2020 $ 1,920,000 Sales revenue 35,000,000 Cost of goods sold 27,330,000 Interest income 150,000 Selling and administrative expenses 4,550,000 Unrealized gain on FV-OCI equity investments (gains/losses not recycled) 260,000 Loss on impairment of goodwill 490,000 Income tax on continuing operations for 2020 (assume this is correct) 600,000 Assessment for additional income tax for 2018 (normal, recurring, and not caused by an error) 400,000 Gain on disposal of FV-NI investments 90,000 Loss from flood damage 360,000 Loss on disposal of discontinued division (net of tax of $ 62,500) 250,000 Loss from operation of discontinued division (net of tax of $ 37,500) 150,000 Dividends declared on common shares 200,000 Dividends declared on preferred shares 50,000 Ayayai decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dylane Corp. During 2020, there were 500,000 common shares outstanding all year. Ayayal's tax rate is 20% on operating income and all gains and losses (use this rate where the tax provisions are not given). Ayayai prepares financial statements in accordance with IFRS. Prepare a multiple-step statement of financial performance for the year ended December 31, 2020, showing expenses by function. Include calculation of EPS. (Round EPS answers to 2 decimal places, e.g. 52.75.)\fItems that will not be reclassified subsequently to net income or loss: $ VThe shareholders' equity section of Marigold Corporation as at December 31, 2020, follows: 10% cumulative preferred shares, 100,000 shares authorized, 79,000 shares outstanding $4,600,000 Common shares, 10 million shares authorized and issued 10,000,000 Contributed surplus 10,800,000 25,400,000 Retained earnings 175,000,000 $200,400,000 Net income of $20 million for 2020 reflects a total effective tax rate of 21%. Included in the net income figure is a loss of $17 million (before tax) relating to the operations of a business segment that is to be discontinued. Calculate earnings per share information as it should appear in the financial statements of Marigold Corporation for the year ended December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.) Earnings per share Continuing Operations Discontinued Operations Net Income / (Loss)