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The following is information for Grouper Corp. for the year ended December 31, 2017: Net sales revenue Unrealized gain on FV-OCI investments Interest income $1,160,000
The following is information for Grouper Corp. for the year ended December 31, 2017: Net sales revenue Unrealized gain on FV-OCI investments Interest income $1,160,000 42,000 5,000 696,000 58,000 48,000 17,000 Loss on inventory due to decline in net realizable value (NRV) Loss on sale of equipment Depreciation expense related to buildings omitted by mistake in 2016 Retained earnings at December 31, 2016 Loss-other (due to expropriation of land) Dividends declared $76,000 25,000 50,000 930,000 60,000 40,000 Cost of goods sold Selling expenses Administrative expenses Dividend revenue The effective tax rate is 20% on all items. Grouper prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/losses on FV-OCI investments are recycled through net income. Grouper Corp. Statement of Comprehensive Income For the Year Ended December 31, 2017 Sales Revenue Net Sales Revenue 1160000 Cost of Goods Sold 696000 Gross Profit/ (Loss) 464000 Operating Expenses Selling Expenses 106000 Administrative Expenses 17000 375000 Income from Operations 5000 Other Revenues and Gains Other Revenues and Gains Dividend Revenue 380000 Interest Income 76000 304000 162400 Other Expenses and Losses Loss on Inventory Due To Decline In Net Realizable Value 141600 Loss on Sale of Equipment Loss from Expropriation Income before Income Tax 380000 Income before Income Tax 380000 Income Tax Expense 76000 Net Income / (Loss) 304000 Other Comprehensive Income v Unrealized Gain on FV-OCI Investments (Net Of Income Tax) v 162400 X Comprehensive Income 141600 Grouper Corp. Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2017 Retained Earnings Balance, January 1, as reported Correction for overstatement of Net Income in Prior Period (Net of Tax) Retained Earnings Balance, January 1, as restated Add y Net Income / (Loss) ifffati X Less Dividends Declared Retained Earnings Balance, December 31 Prepare the journal entry to record the depreciation expense omitted by mistake in 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Retained Earnings
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