Reference no: EM132825980
Question - Pronghorn Corp.'s statement of financial position at the end of 2019 included the following items:
Current assets $1,275,000
Current liabilities $994,200
Land 30,700
Bonds payable 1,281,000
Buildings 1,150,000
Common shares 192,000
Equipment 322,000
Retained earnings 189,000
Accumulated depreciation-buildings (149,000)
Accumulated depreciation-equipment (12,600)
Intangible assets-patents 40,100
Total $2,656,200
Total $2,656,200
The following information is available for the 2020 fiscal year:
1. Net income was $398,000. Interest paid is classified as operating activities.
2. Equipment (cost of $21,200 and accumulated depreciation of $8,030) was sold for $10,700.
3. Depreciation expense was $4,040 on the building and $9,200 on equipment.
4. Amortization expense on a patent was $3,080.
5. Current assets other than cash increased by $40,000. Current liabilities increased by $24,000.
6. An addition to a building was completed at a cost of $32,800.
7. An FV-OCI investment in shares was purchased for $20,900 on the last day of the year. This was the first such investment made by Pronghorn in its history.8.Bonds payable of $75,200 were issued at par.
9. Cash dividends of $192,000 were declared and paid. Dividends paid are treated as financing activities.
Pronghorn prepares financial statements in accordance with IFRS.
Required -
1. Prepare statement of financial position (SFP) as at December 31, 2020.
2. Prepare statement of cash flows for the year ended December 31, 2020, using the indirect method.