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Below is a list of accounts and balances for FlipFlop Inc. for the year ending June 30, 2020. All balances are in thousands of dollars. FlipFlop Inc. follows IFRS. Assume a tax rate of 15%. Exclude the presentation of earnings per share for this question.

Account Title Balance

Accounts Payable $9,100

Accounts Receivable $13,900

Accumulated Depreciation $1,500

Advertising Expense $1,500

Cash $20,200

Cash Dividends $3,500

Common Shares $10,600

Cost of Goods Sold $17,240

Depreciation Expense-Office Equipment $80

Depreciation Expense-Store Equipment $700

Gain on Foreign Currency Translation Adjustments $260

Gain on Sale of Discontinued Operations $1,800

Income from Operating Discontinued Operations $7,200

Interest Expense $1,000

Merchandise Inventory $18,300

Miscellaneous Administrative Expenses $570

Notes Payable $20,000

Office Salaries Expense $1,300

Prepaid Insurance $1,300

Property, Plant and Equipment $26,400

Rent Expense-Office $650

Rent Expense-Retail $1,150

Retained Earnings (beginning balance) $21,691

Sales Salaries Expense $3,000

Sales Discounts $1,000

Sales Returns and Allowances $1,100

Sales Revenue $43,100

Unearned Revenue $1,100

Notes:

Unlimited common shares are authorized and 2,300 have been issued and are currently outstanding.

The notes payable is payable over 5 years and $4,000 will be paid by June 30, 2021.

Do not enter dollar signs or commas in the input boxes.

Round all answers to the nearest whole number.

Do not use the negative sign for any values.

a) Prepare a statement of comprehensive income by function for the year ended June 30, 2020.

FlipFlop Inc.

Statement of Comprehensive Income

For the Year Ended June 30, 2020

Sales Revenue (net) Answer

42000

Cost of Goods Sold Answer

Gross Profit Answer

Selling Expenses Answer

6250

Administrative Expenses Answer

Operating Profit Answer

Finance Costs Answer

Profit before Income Tax Answer

Income Tax Expense Answer

Profit for the Year from Continuing Operations Answer

Profit for the Year from Discontinued Operations Answer

Profit for the Year Answer

Other Comprehensive Income, Net of Tax

Gain on Foreign Currency Translation Adjustments (net of tax) Answer

Total Comprehensive Income Answer

b) Prepare a statement of changed in equity for the year ended June 30, 2020. There was no opening balance in the accumulated other income account and FlipFlop Inc. did not issue any new common shares in the fiscal year ended June 30, 2020.

FlipFlop Inc.

Statement of Changed in Equity

For the Year Ended June 30, 2020

Common Shares Retained Earnings Reserves Total Equity

Opening Balance Answer

Answer

Answer

Profit for the Year/Net Income Answer

Answer

Other Comprehensive Income

Foreign Currency Translation Adjustments Answer

Answer

Total Comprehensive Income Answer

Answer

Answer

Transactions with Owners

Dividends on Common Shares Answer

Answer

Total Transactions with Owners Answer

Answer

Closing Balance Answer

Answer

Answer

Answer

c) Prepare a statement of financial position as at June 30, 2020.

FlipFlop Inc.

Statement of Financial Position

As at June 30, 2020

Assets

Long-Term Assets

Property, Plant and Equipment (net) Answer

24900

Total Long-Term Assets

Current Assets

Prepaid Insurance Answer

1300

Merchandise Inventory Answer

18300

Accounts Receivable Answer

13900

Cash Answer

20200

Total Current Assets Answer

53700

Total Assets Answer

78600

Equity Attributable to Owners

Common Shares, unlimited authorized, Answer

2300

issued Answer

10600

Retained Earnings Answer

21691

Reserves Answer

Total Equity Attributable to Owners Answer

Liabilities

Long-Term Liabilities

Notes Payable, Long-Term Portion Answer

Total Long-Term Liabilities Answer

Current Liabilities

Accounts Payable Answer

Unearned Revenue Answer

Notes Payable, Current Portion Answer

Total Current Liabilities Answer

Total Liabilities Answer

Total Equity and Liabilities Answer

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