Reference no: EM132838059

The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2; Auth 500,000 and issued/outstanding 100,000 @ an average issue price of $4.75. Accumulted other comprehensive income is $180,000. The balance in shareholders' equity is retained earnings.

During 2021:

Sales revenue $880,000,

interest revenue $30,000 ;

rent revenue $160,000;

Dividend Revenue $80,000;

sales Returns & Allowances $25,000;

Sales discounts $70,000;

COGS $350,000;

Selling exp $100,000;

General Administrative expenses $80,000;

Interest expense $70,000;

Loss on sale of Investments $60,000;

Restructuring Costs $75,000;

Gain on sale of compenant that qualifies as a discontinued ops $150,000;

Write down of inventory $50,000;

foreign currency translation gain $20,000;

unrealized gain in value of land $50,000;

Unrealized gain in the value of patents $50,000;

unrealized loss in value of available for sale securities $60,000 ;

Additional information:

1. Tax rate is 20%
2. The company issues 50,000 shares on 10/1/21 for $250,000.
3. The company issues 20,000 shares on 7/1/21 for equipment that has a fair value of $100,000
4. The company declared dividends of $100,000 of which $25,000 will be paid on 1/31/22.

Problem 1: Prepare a statement of comprehensive income utilizing the multiple step income statement approach.

Problem 2: Prepare a statement of shareholders' equity.