Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The equity accounts of Concord Corp. as at January 1, 2020, were as follows: Retained earnings, January 1, 2020 $ 254,200 Common shares 600,000 Preferred
The equity accounts of Concord Corp. as at January 1, 2020, were as follows:
Retained earnings, January 1, 2020 | $ | 254,200 | ||
Common shares | 600,000 | |||
Preferred shares | 250,000 | |||
Contributed surplus | 293,000 | |||
Accumulated other comprehensive income | 525,000 |
During 2020, the following transactions took place:
Adjustment to correct error in prior years (gain net of tax $20,000) | $48,000 | ||
Unrealized gains on FV-OCI equity investments (net of tax $34,000) | 82,000 | ||
Dividends: | |||
Common shares | 120,000 | ||
Preferred shares | 62,000 | ||
Issue of equity: | |||
Common shares | 293,000 | ||
Preferred shares | 5,000 | ||
Net income | 343,000 |
Prepare a statement of changes in equity for the year ended December 31, 2020. The company follows IFRS. Assume that equity investments are accounted for as FV-OCI investments, with gains/losses not recycled through net income.
Statement of Ch Preferred Shares Common Shares Beginning Balance $ $ $ Adjustment to correct prior error (net of tax of $20,000) Beginning Balance, as adjusted Comprehensive Income: Net income Other comprehensive income Dividends to shareholders: Preferred Activate Wi Go to Settings Common Contr. Surplus Retained Earnings Acc. Other Comp. Income Total $ $ $ $ Activate Win Go to Settings to Beginning Balance, as adjusted Comprehensive Income: Net income Other comprehensive income Dividends to shareholders: Preferred Common Issue of equity: Preferred shares Common shares Ending Balance $ $ Activate \$/in Go to Settinas to Statement of Ch Preferred Shares Common Shares Beginning Balance $ $ $ Adjustment to correct prior error (net of tax of $20,000) Beginning Balance, as adjusted Comprehensive Income: Net income Other comprehensive income Dividends to shareholders: Preferred Activate Wi Go to Settings Common Contr. Surplus Retained Earnings Acc. Other Comp. Income Total $ $ $ $ Activate Win Go to Settings to Beginning Balance, as adjusted Comprehensive Income: Net income Other comprehensive income Dividends to shareholders: Preferred Common Issue of equity: Preferred shares Common shares Ending Balance $ $ Activate \$/in Go to Settinas to
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started