Reference no: EM132688760
Presented below is information (partial) which relates to Granite Enterprises Limited for 2020:
Retained earnings, January 1, 2020... ....................................................$792,000
Sales revenue .................................................................................14,600,000
Cost of goods sold ...........................................................................11,400,000
Property, Plant and Equipment (Net) ......................................................1,200,000
Interest income .....................................................................................68,000
Inventory .............................................................................................330,000
Selling and administrative expenses ......................................................1,880,000
Unrealized loss on FV-OCI investments ................................................... 128,000
Gain on disposition................................................................................208,000
Accounts receivable ............................................................................. 540,000
Accounts Payable .................................................................................225,000
Notes payable...................................................................................... 290,000
Income tax on continuing operations.........................................................319,000
Lawsuit lost re unsatisfied customer...........................................................140,000
Loss on sale of FV-NI investments .............................................................44,000
Loss - other (due to flood damage) ..........................................................156,000
Loss from disposal of discontinued division (net of tax of 35,000) ....................105,000
Gain from operation of discontinued division (net of tax of 18,000).....................66,000
Dividends declared on common shares ......................................................28,000
Accumulated other Comprehensive income, January 1, 2020 .........................32,000
Common shares ...................................................................................600,000
- Granite decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dylane Corp. During 2020, there were 800,000 common shares outstanding all year. Granite's tax rate is 25% on operating income and all gains and losses use this rate where the tax provision is not given. Granite prepares financial statements in accordance with IFRS. Assume any tax numbers you have are correct.
Instructions
Problem a) Create a multiple-step statement of comprehensive income for 2020. Include calculation of EPS.
Problem b) Create a partial statement of Changes in Equity for December 31, 2020 showing the Retained Earnings and Accumulated Other Comprehensive income columns.