80.2K

Verified Solution

Link Copied!

On Time Clock Company Inc. Income Statement For the Year Ended December 31, 2020 Sales revenues Cost of goods sold Gross profit Selling expenses 41,850 Administrative expenses 32,142 Income before income tax Other revenues and gains Unrealized gain on FV-OCI equity investments Dividend revenue $358,675 198,112 160,563 73,992 86,571 36,000 40,000 162,571 56,900 $105,671 Income tax expense Net income $216,000 On Time Clock Company Inc. Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2020 Retained earnings, January 1, 2020 Add: Net income for 2020 $105,671 Gain on disposal of long-term investments 31,400 $137,071 Deduct: Loss on expropriation 13,000 Correction of mathematical error (net of tax) 17,186 (30,186) Retained earnings, December 31, 2020 106,885 $322,885 Instructions a. Assume that On Time Clock Company follows IFRS. Assume that investments are accounted for as FV-OCI equity investments with gains/losses not recycled through net income. Prepare a statement of financial performance showing expenses by function. Ignore calculation of EPS. b. Prepare the retained earnings and accumulated other comprehensive income portion of the state- ment of changes in equity. Assume an opening balance of $120,000 in accumulated other compre- hensive income

Answer & Explanation Solved by verified expert

See Answer