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Using IFRS standard, thank you! Question 2 Frankie Corporation's financial statements as at December 31, 2020, appear below: Frankie Corporation Comparative Statements of Financial Position
Using IFRS standard, thank you!
Question 2 Frankie Corporation's financial statements as at December 31, 2020, appear below: Frankie Corporation Comparative Statements of Financial Position As at 31 December, 2019 and 2020 2020 2019 Cash $ 69,000 $ 21,000 Equity investments - Trading 25,000 22,000 Equity investments - Non-trading 30,000 25,000 Accounts receivable 53,000 39,000 Inventory 50,000 60,000 Prepaid expenses 6,000 9,000 Plant assets 540,000 380,000 Accumulated depreciation (140,000) (125,000) Goodwill 51,000 58,000 $684,000 $489,000 Accounts payable $ 41,000 $ 46,000 Accrued liabilities 33,000 24,000 Cash dividends payable 8,000 6,000 Bonds payable 50,000 47,000 Mortgage payable 136,000 Deferred tax income liability 5,000 8,000 Preferred shares 201,000 Ordinary shares 320,000 200,000 Retained earnings 21,000 22,000 Reserves 5.000 $684,000 $489.000 Frankie Corporation Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December, 2020 Sales Cost of sales Gross profit Depreciation expense Operating expenses Other gains and losses Income from operations Interest expense Income before income tax Income tax expense Net income Other comprehensive income: Holding gain on non-trading equity investments, net of tax Comprehensive income $ 660,000 (359,000) 301,000 (25,000) (160,000) (4,000) 112,000 (6,000) 106,000 (39,000) 67,000 5,000 S 72,000 Supplemental information: 1. During the year FC exchanged 5,000 ordinary shares for plant assets having a fair value of $100,000 2. During the year FC declared and issued a stock dividend of 1,000 ordinary shares. The transaction was valued at $20,000. 3. During the year goodwill was written down $7,000 to reflect a permanent impairment loss of the asset. 4. The deferred income tax liability represents temporary differences relating to the use of capital cost allowance for income tax reporting and straight-line depreciation for financial statement reporting of plant assets. 5. FC did not buy or sell any trading or non-trading equity securities during the year. The trading equity securities have not been designated as cash equivalents. 6. The recorded increase in the bonds payable account was due to the amortization of the discount which was included in interest expense. 7. FC elects to record interest paid as an operating activity and dividends paid as a financing activity 8. During the year FC sold equipment (plant assets) that originally cost $40,000 for $30,000 cash. Required (a) From the information above, prepare FC's statement of cash flows for the year ended December 31, 2020, using the indirect method. (b) Prepare FC's cash flows from operating activities for the year ended December 31, 2020, using the direct method. (c) Prepare note disclosure(s) for non-cash transactionsStep by Step Solution
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