The following statements were prepared for Jenelle Bapin Ltd. (JBL"), a company using IFRS, by the company's new bookkeeper: Jenelle Bapin Ltd. Comprehensive Income Page For the Year Ended December 31, 2019 (in thousands of dollars) Income Sales revenue (includes $280 pertaining to the transportation division) Gain on expropriation of land by government (A) 1,150 $1,300 150 Expenses: Depreciation (B) Cost of goods sold (C) Income tax (D) Advertising (E) Other (F) 34 710 57 40 746 1,547 Regular Income (Loss) $ (397) Jenelle Bapin Ltd. Retained Earnings For the Year Ended December 31, 2019 (in thousands of dollars) Opening Retained Earnings, January 1 Regular income (loss) Severance pay (G) Dividends (H) Other comprehensive income relating to investments Ending Retained Earnings, December 31 $ 592 (397) (100) (25) 20 $ 90 NOTES (all dollar amounts are in thousands of dollars): (A) in December 2019, the provincial government expropriated some land (original cost of $20) Tom JBL The land was needed to provide a thoroughfare for a major road bypass around the city. Under the terms of the expropriation, the government paid $150 to JBL and took possession of the land (B) The new bookkeeper neglected to record depreciation expense on a new item of equipment that was purchased on January 1, 2019. The original cost of the equipment was $20 and it should be deprecated at a rate of 10% per annum using a declining balance method. The equipment is expected to have a residual value of $3 at the end of its useful life, which is 20 years. (C) Goods costing $so were purchased from Supplier Company, Foe Shipping point. It was shipped on December 28, 2019 and arrived at JBL's warehouse on January 4, 2020. The invoice arrived December 23, 2019 and the bookkeeper recorded the purchase. JBL uses a periodic inventory system and hence determined ending inventory based on a physical count at the end of the business day on December 31 (D) JBL pays income tax at a rate of 42% on all income except for the gain on the expropriation of the land that is taxed at a rate of 30%. Assume that all revenues, expenses, gains, and losses (including other comprehensive income) are taxable or deductible for income tax purposes. The reported income tax expense of $57 reflects cash taxes paid this year but which were accrued in prior year. (E) The advertising expenses relate to a payment made to a marketing agency on December 27, 2019 for services that will be rendered in March 2020. (F) Details of the amounts recorded in other expenses were as follows: All expenses associated with transportation division $700 Miscellaneous operating expenses $746 The transportation division had been losing money for the last three years. Management decided to shut down the division to avoid future losses. (G) in 2019. JBL laid off two employees who no longer had the skills required to work for the company. In order to avoid a wrongful dismissal lawsuit, the company paid the employees $50 each as a severance pay. In tum, the employees agreed not to take any legal action against the company. (H) The company paid $25 to a major shareholder for management services rendered. Since the payment was made to a shareholder, the bookkeeper recorded it as dividends paid (1) Assume that all experses, other than Cost of Goods Sold are part of the Administration function Required (a) Assume that the transportation division meets the definition d a discontinued operation. Prepare, in good form, a multiple-step comprehensive income statement for JBL for 2019 JBL categorizes is expenses by Lunction (as opposed to nature) Correct any deficiencies and/or errors contained in the draft statements (b) Assume that, in addition to the information given in the original question above, you identity that JBL had made a mistake in the 2016 financial statements. Depreciation expense of 530 was recorded twice in that year. Prepare only the Retained Eamings portion of the Statement of Changes in Equity for 2019. Use good form The following statements were prepared for Jenelle Bapin Ltd. (JBL"), a company using IFRS, by the company's new bookkeeper: Jenelle Bapin Ltd. Comprehensive Income Page For the Year Ended December 31, 2019 (in thousands of dollars) Income Sales revenue (includes $280 pertaining to the transportation division) Gain on expropriation of land by government (A) 1,150 $1,300 150 Expenses: Depreciation (B) Cost of goods sold (C) Income tax (D) Advertising (E) Other (F) 34 710 57 40 746 1,547 Regular Income (Loss) $ (397) Jenelle Bapin Ltd. Retained Earnings For the Year Ended December 31, 2019 (in thousands of dollars) Opening Retained Earnings, January 1 Regular income (loss) Severance pay (G) Dividends (H) Other comprehensive income relating to investments Ending Retained Earnings, December 31 $ 592 (397) (100) (25) 20 $ 90 NOTES (all dollar amounts are in thousands of dollars): (A) in December 2019, the provincial government expropriated some land (original cost of $20) Tom JBL The land was needed to provide a thoroughfare for a major road bypass around the city. Under the terms of the expropriation, the government paid $150 to JBL and took possession of the land (B) The new bookkeeper neglected to record depreciation expense on a new item of equipment that was purchased on January 1, 2019. The original cost of the equipment was $20 and it should be deprecated at a rate of 10% per annum using a declining balance method. The equipment is expected to have a residual value of $3 at the end of its useful life, which is 20 years. (C) Goods costing $so were purchased from Supplier Company, Foe Shipping point. It was shipped on December 28, 2019 and arrived at JBL's warehouse on January 4, 2020. The invoice arrived December 23, 2019 and the bookkeeper recorded the purchase. JBL uses a periodic inventory system and hence determined ending inventory based on a physical count at the end of the business day on December 31 (D) JBL pays income tax at a rate of 42% on all income except for the gain on the expropriation of the land that is taxed at a rate of 30%. Assume that all revenues, expenses, gains, and losses (including other comprehensive income) are taxable or deductible for income tax purposes. The reported income tax expense of $57 reflects cash taxes paid this year but which were accrued in prior year. (E) The advertising expenses relate to a payment made to a marketing agency on December 27, 2019 for services that will be rendered in March 2020. (F) Details of the amounts recorded in other expenses were as follows: All expenses associated with transportation division $700 Miscellaneous operating expenses $746 The transportation division had been losing money for the last three years. Management decided to shut down the division to avoid future losses. (G) in 2019. JBL laid off two employees who no longer had the skills required to work for the company. In order to avoid a wrongful dismissal lawsuit, the company paid the employees $50 each as a severance pay. In tum, the employees agreed not to take any legal action against the company. (H) The company paid $25 to a major shareholder for management services rendered. Since the payment was made to a shareholder, the bookkeeper recorded it as dividends paid (1) Assume that all experses, other than Cost of Goods Sold are part of the Administration function Required (a) Assume that the transportation division meets the definition d a discontinued operation. Prepare, in good form, a multiple-step comprehensive income statement for JBL for 2019 JBL categorizes is expenses by Lunction (as opposed to nature) Correct any deficiencies and/or errors contained in the draft statements (b) Assume that, in addition to the information given in the original question above, you identity that JBL had made a mistake in the 2016 financial statements. Depreciation expense of 530 was recorded twice in that year. Prepare only the Retained Eamings portion of the Statement of Changes in Equity for 2019. Use good form