The 31 December 20X2 year-end trial balance for Dynamics Ltd., a private company, showed the...
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Accounting
The 31 December 20X2 year-end trial balance for Dynamics Ltd., a private company, showed the following account balances: Dr./(Cr.) Retained earnings, 31 December 20X1 $ (7,700,000 ) Sales revenue (8,700,000 ) Dividend income from investments (63,000 ) Cost of sales 4,650,000 Impairment on discontinued plant assets, held-for-sale (before tax) 730,000 General, selling, and administrative expenses 1,815,000 Interest expense 98,000 Reduction in prior years earnings due to change in accounting policy, cumulative to 31 December 20X1 (before tax) 340,000 Dividends declared, to be paid 15 January 20X3 630,000 Loss due to bankruptcy of major client 150,000 The company pays income tax at a rate of 20%. Required: Prepare an income statement for the year ended 31 December 20X2. (Enter answers in thousands, not in whole Canadian dollar.) Prepare a statement of retained earnings for the year ended 31 December 20X2. (Enter answers in thousands, not in whole Canadian dollar.
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