The following account balances were included in the adjusted trial balance of NorthCo at September 30, 2020 All accounts have normal balances Accumulated depreciation, equipment 90,000 Accumulated depreciation, office furniture 40,000 Accumulated other comprehensive income 193,000 Allowance for doubtful accounts 1,700 Common shares 300,000 Cost of goods sold 1,078,000 Depreciation expense, 2014 expense, understated due to error 28,000 Depreciation expense, equipment 8,000 Depreciation expense, office furniture 5,500 Dividends declared on common shares 18,000 Dividends declared on preferred shares 57,000 Entertainment expense 24,000 Gain on sale of land 88,000 Insurance expense 23,000 Interest expense 26,000 Loss on disposal of discontinued operations 43,000 Miscellaneous operating expenses (administrative) 7,000 Preferred shares 63,200 Rent expense 37,000 Retained earnings 125,000 Salaries expense 86,000 Sales 2,200,000 Sales commissions expense 141,000 Sales discounts 12,000 Sales returns and allowances 73,000 Telephone and internet expense (administrative) 5,000 Unrealized gain on FVOCI investments 38,000 Additional information The company is publically traded and follows IFRS and its income tax rate is 40 On September 30, 2020, the number of common shares outstanding was 138,000 and there were no changes to common shares during the fiscal year The ending balance for preferred shares of $63,200 includes issuing 1,100 preferred shares at $12 per share in the current year The market price per common share on the reporting date was $11 97 a) Calculate the net income (loss) for the year ended September 30, 2020 Please make sure your final answer(s) are accurate to the nearest whole number b) Prepare a statement of changes in equity for the year ended September 30, 2020 Please make sure your final answer(s) are accurate to the nearest whole number c) Required disclosure Calculate the tax amount for the correction of the prior period error for depreciation expense Please make sure your final answer(s) are accurate to the nearest whole number d) Calculate the price earnings ratio Please make sure your final answer(s) are accurate to 2 decimal places (Hint Calculate earnings per share first and round this to the nearest 2 decimal places )

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Posted on Jul 14, 2024

The following account balances were included in the adjusted trial balance of NorthCo at September 30, 2020. All accounts have normal balances: Accumulated depreciation, equipment

The following account balances were included in the adjusted trial balance of NorthCo at September 30, 2020. All accounts have normal balances:

Accumulated depreciation, equipment	90,000
Accumulated depreciation, office furniture	40,000
Accumulated other comprehensive income	193,000
Allowance for doubtful accounts	1,700
Common shares	300,000
Cost of goods sold	1,078,000
Depreciation expense, 2014 expense, understated due to error	28,000
Depreciation expense, equipment	8,000
Depreciation expense, office furniture	5,500
Dividends declared on common shares	18,000
Dividends declared on preferred shares	57,000
Entertainment expense	24,000
Gain on sale of land	88,000
Insurance expense	23,000
Interest expense	26,000
Loss on disposal of discontinued operations	43,000
Miscellaneous operating expenses (administrative)	7,000
Preferred shares	63,200
Rent expense	37,000
Retained earnings	125,000
Salaries expense	86,000
Sales	2,200,000
Sales commissions expense	141,000
Sales discounts	12,000
Sales returns and allowances	73,000
Telephone and internet expense (administrative)	5,000
Unrealized gain on FVOCI investments	38,000

Additional information: The company is publically traded and follows IFRS and its income tax rate is 40%. On September 30, 2020, the number of common shares outstanding was 138,000 and there were no changes to common shares during the fiscal year. The ending balance for preferred shares of $63,200 includes issuing 1,100 preferred shares at $12 per share in the current year. The market price per common share on the reporting date was $11.97.

a) Calculate the net income (loss) for the year ended September 30, 2020. Please make sure your final answer(s) are accurate to the nearest whole number.

b) Prepare a statement of changes in equity for the year ended September 30, 2020. Please make sure your final answer(s) are accurate to the nearest whole number.

c) Required disclosure: Calculate the tax amount for the correction of the prior period error for depreciation expense. Please make sure your final answer(s) are accurate to the nearest whole number.

d) Calculate the price-earnings ratio. Please make sure your final answer(s) are accurate to 2 decimal places. (Hint: Calculate earnings per share first and round this to the nearest 2 decimal places.)