Question
Presented below is information which relates to Corian Enterprises Limited for 2017:
Retained earnings, January 1, 2017. ..................$990,000
Sales revenue .............................18,250,000
Cost of goods sold .........................14,250,000
Interest income .............................85,000
Selling and administrative expenses ..................2,350,000
Unrealized gain on FV-OCI investments ................. 160,000
Loss on disposition............................260,000
Income tax on continuing operations...................398,750
Lawsuit lost re unsatisfied customer.........................175,000
Gain on sale of FV-NI investments .....................55,000
Loss - other (due to flood damage) ....................195,000
Loss from disposal of discontinued division (net of tax of 43,750) ........131,250
Loss from operation of discontinued division (net of tax of 22,500).........82.500
Dividends declared on common shares ..................35,000
Accumulated other Comprehensive income, January 1, 2017 .........40,000
Common shares .............................750,000
Corian decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dylane Corp. During 2017, there were 800,000 common shares outstanding all year. Corian's tax rate is 25% on operating income and all gains and losses use this rate where the tax provision is not given. Corian prepares financial statements in accordance with IFRS.. Assume any tax numbers you have are correct.
Instructions
a) In good form, prepare a multiple-step statement of comprehensive income for 2017. Include calculation of EPS.
b) Prepare a partial statement of Changes in Equity for December 31, 2017 showing the Retained Earnings and Accumulated Other Comprehensive income columns.