Question 40

Marigold Ltd. had the following 2020 income statement data:

Sales$206,500Cost of goods sold119,100Gross profit87,400Operating expenses (includes depreciation of $23,100)

49,600Income before income taxes

37,800Income taxes15,000Net income$22,800

The following accounts increased during 2020 by the amounts shown: Accounts Receivable, $15,000; Inventory, $10,800; Accounts Payable (relating to inventory), $13,800; Taxes Payable, $2,000; and Mortgage Payable, $40,700.

(a)

Prepare the cash flows from operating activities section of Marigold's 2020 statement of cash flows using the indirect method and following IFRS.

Question 41

A partial trial balance of Lindy Corporation at December 31, 2020, follows:

Dr.Cr.Supplies$8,800Salaries and wages payable$5,800Interest receivable2,640Prepaid insurance113,800Unearned rent revenue-0-Interest payable15,600

Additional adjusting data:

1.A physical count of supplies on hand on December 31, 2020, totalled $4,300. Through an oversight, the Salaries and Wages Payable account was not changed during 2020. Accrued salaries and wages on December 31, 2020, amounted to $8,000.2.The Interest Receivable account was also left unchanged during 2020. Accrued interest on investments amounted to $2,000 on December 31, 2020.3.The unexpired portions of the insurance policies totalled $46,200 as at December 31, 2020.4.A cheque for $77,000 was received on January 1, 2020, for the rent of a building for both 2020 and 2021. The entire amount was credited to Rent Revenue.5.Depreciation on equipment for the year was recorded in error as $4,850 rather than the correct figure of $48,500.6.A further review of prior years' depreciation calculations revealed that depreciation on equipment of $19,600 had not been recorded. It was decided that this oversight should be corrected by adjusting prior years' income.

Assume that Lindy applies IFRS.

(a)

Assuming that the books have not been closed, what adjusting entries are necessary at December 31, 2020? Ignore income tax considerations

Question 42

Cullumber Inc. is involved in five separate industries. The following information is available for each of the five industries:

OperatingOperatingTotalProfit/SegmentRevenue(Loss)AssetsA$142,111$34,432$243,418B40,60311,01911,157C26,392-6,88736,513D192,864-2,75549,698E2,03068915,214$404,000$36,498$356,000

(a1)

Calculate the minimum reportable segment amount based on the revenue test.

Minimum reportable segment amount based on the revenue test