50.1K

Verified Solution

Link Copied!

Company 1-X Company was formed on 12/31/2019 when its sole shareholder contributed land worth $200,000. The company had the following balance sheet on 12/31/2019. Assets Land $200,000 Equity Common Stock $200,000 The company rents the land to a tenant. The tenant pays $24,000 annual rent in cash. The company has one expense, property taxes of $14,000 that is paid on December 30 of each year. X Company uses IFRS and the revaluation method (See IAS 16). The land has the following fair values on the respective dates. Date 12/31/20 12/31/21 12/31/22 Fair Value $230,000 $240,000 $215,000 Company 2-H Company also was formed on 12/31/2019 when its sole shareholder contributed land worth $200,000. The company had the following balance sheet on 12/31/2019. Assets Land $200,000 Equity Common Stock $200,000 The company rents the land to a tenant. The tenant pays $24,000 annual rent in cash. The company has one expense, property taxes of $14,000 that is paid on December 30 of each year. H Company also uses IFRS and the revaluation method (See IAS 16). The land has the following fair values on the respective dates. Date 12/31/20 12/31/21 12/31/22 Fair Value $170,000 $190,000 $215,000 For X Company, fill in the missing financial statement amounts in the green cells. For H Company, fill in the missing financial statement amounts in the blue cells. The net income cells already have formulas in them that will automatically update when you enter amounts in green or blue cells. Print your sheet (The print area has been preset.) and turn it in at the beginning of class on Monday, December 2, 2019. X Company Income Statement Rental revenue Property Tax Expense Other Gains (Losses) if any Enter loss, if any, as negative Net Income $ $ $ $ 2020 24,000 14,000 - 10,000 2021 $ 24,000 $ $ 14,000 $ $ - $ $10,000 $ 2022 24,000 14,000 . 10,000 Statement of Comprehensive Income Net Income Other Comprehensive Income if any Comprehensive Income $ $ $ 2020 10,000 30,000 - $ $ $ 2021 10,000 10,000 - 2022 $ 10,000 $ (25,000) $ 12/31/19 12/31/20 12/31/21 12/31/22 Statement of Financial Position Assets Cash Land $ - $ 10,000 $ 20,000 $ 200,000 $ 230,000 $ 240,000 $ 30,000 $ 215,000 Total Equity Common Stock Retained Earnings Accumulated Other Comprehensive Income $ 200,000 $ - $ - $ 200,000 $ 30,000 $ - $ 200,000 $ 40,000 $ . $ 200,000 $ 15,000 $ . H Company Income Statement Rental revenue Property Tax Expense Other Gains (Losses) if any Enter loss, if any, as negative Net Income 2020 24,000 14,000 - 10,000 $ $ $ $ $ $ 2021 24,000 14,000 . 10,000 2022 24,000 14,000 $ $ $ $ $ 10,000 Statement of Comprehensive Income Net Income Other Comprehensive Income Comprehensive Income 2020 $ 10,000 $ $ (30,000) $ $ - $ 2021 10,000 20,000 2022 $ 10,000 $ 25,000 $ 12/31/19 12/31/20 12/31/21 12/31/22 Statement of Financial Position Assets Cash Land - $ 200,000 $ 10.000 $ 170,000 $ 20,000 $ 190,000 $ 30,000 $ 215,000 $ 200,000 Total Equity Common Stock Retained Eamings Accumulated Other Comprehensive Income $200,000 - $200,000 $ 20,000 $200,000 $ 45,000 $

Answer & Explanation Solved by verified expert

See Answer