Question
The following account balances were included in the adjusted trial balance of WestCo at November 30, 2020. All accounts have normal balances: Additional information: The
The following account balances were included in the adjusted trial balance of WestCo at November 30, 2020. All accounts have normal balances:
Additional information: The company is publically traded and follows IFRS and its income tax rate is 20%. On November 30, 2020, the number of common shares outstanding was 118,000 and there were no changes to common shares during the fiscal year. The ending balance for preferred shares of $90,800 includes issuing 1,800 preferred shares at $6 per share in the current year. The market price per common share on the reporting date was $10.05. a) Calculate the net income (loss) for the year ended November 30, 2020. Please make sure your final answer(s) are accurate to the nearest whole number.
Net income (loss) = $
b) Prepare a statement of changes in equity for the year ended November 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.
Tax amount = $
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.)
Price-earnings ratio = _____ times
Accumulated depreciation, equipment. Accumulated depreciation, furniture. Accumulated other comprehensive income. Allowance for doubtful accounts. Common shares. Cost of goods sold Depreciation expense, 2014 expense, understated due to error Depreciation expense, equipment. Depreciation expense, furniture. Dividends declared on common shares. Dividends declared on preferred shares Entertainment expense... Gain on sale of land. Insurance expense. Interest expense Loss on disposal of discontinued operations. Miscellaneous operating expenses (administrative). Preferred shares. Retained earnings Salaries expense. Sales Sales commissions expense. Sales discounts... Sales returns and allowances... Telephone and internet expense (sales). Unrealized gain on FVOCl investments
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