Star Finder Inc. has provided the following information for the year ended December 31, 2021:...
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Accounting
Star Finder Inc. has provided the following information for the year ended December 31, 2021:
Sales revenue
$1,300,000
Loss on inventory due to decline in net realizable value
$80,000
Unrealized gain on FV-OCI equity investments
42,000
Loss on disposal of equipment
35,000
Interest income
7,000
Depreciation expense related to buildings omittedby mistake in 2020
55,000
Cost of goods sold
780,000
Retained earnings at December 31, 2020
980,000
Selling expense
65,000
Loss from expropriation of land
60,000
Administrative expense
48,000
Dividendsdeclared
45,000
Dividend revenue
20,000
The effective tax rate is 25% on all items. Star Finder Inc. prepares financial statements in accordance with IFRS. The FV-OCI equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.
Required:
1.Prepare multi-step statement of financial performance for 2021, showing expenses by function. Ignore calculation of EPS.
2.Prepare the retained earnings section of the statement of changes in equity for 2021.
3.Prepare the journal entry to record the depreciation expense omitted by mistake in 2020.
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