Question
The 31 December 20X2 year-end trial balance for Dynamics Ltd., a private company, showed the following account balances: Dr./(Cr.) Retained earnings, 31 December 20X1 $
The 31 December 20X2 year-end trial balance for Dynamics Ltd., a private company, showed the following account balances:
Dr./(Cr.) | |||
Retained earnings, 31 December 20X1 | $ (8,300,000) | ||
Sales revenue | (9,300,000) | ||
Dividend income from investments | (69,000) | ||
Cost of sales | 4,950,000 | ||
Impairment on discontinued plant assets, held-for-sale (before tax) | 790,000 | ||
General, selling, and administrative expenses | 1,845,000 | ||
Interest expense | 104,000 | ||
Reduction in prior years earnings due to change in accounting policy, cumulative to 31 December 20X1 (before tax) | 400,000 | ||
Dividends declared, to be paid 15 January 20X3 | 690,000 | ||
Loss due to bankruptcy of major client | 180,000 | ||
The company pays income tax at a rate of 20%. Required: Prepare an income statement for the year ended 31 December 20X2. (Enter answers in thousands, not in whole Canadian dollar.)
Prepare a statement of retained earnings for the year ended 31 December 20X2. (Enter answers in thousands, not in whole Canadian dollar.)
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