Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. On December 31, 2020, an analysis of the accounts and discussions with company officials revealed the following information: Sales Revenues 2,100,000 Purchases 1,284,000 Purchase discounts 36,000 Cash 120,000 Loss on discontinued operations (net of tax) 56,000 Selling expenses 256,000 Share capital 400,000 Accounts receivable 180,000 Land 740,000 Accumulated depreciation 360,000 Dividend revenue 16,000 Inventory, January 1, 2020 304,000 Inventory, December 31, 2020 250,000 Unearned service revenue 8,800 Accrued interest payable 2,000 Dividends declared 58,000 Patents 200,000 Retained earnings, January 1, 2020 580,000 Interest expense 34,000 General and administrative expenses 300,000 Accounts payable 120,000 Allowance for doubtful accounts 10,000 Notes payable (maturity 7/1/25) 400,000 Machinery and equipment 900,000 Materials and supplies 80,000 Note: The amount of income taxes was ¥91,200, including the tax effect of the discontinued operations loss which amounted to ¥24,000. Instructions: Prepare an income statement and retained earnings statement for 2020 for Al-Arab Company that is presented in accordance with IFRS (including format and terminology).
Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. On December 31, 2020, an analysis of the accounts and discussions with company officials revealed the following information:
|
Sales Revenues |
2,100,000 |
|
Purchases |
1,284,000 |
|
Purchase discounts |
36,000 |
|
Cash |
120,000 |
|
Loss on discontinued operations (net of tax) |
56,000 |
|
Selling expenses |
256,000 |
|
Share capital |
400,000 |
|
Accounts receivable |
180,000 |
|
Land |
740,000 |
|
Accumulated depreciation |
360,000 |
|
Dividend revenue |
16,000 |
|
Inventory, January 1, 2020 |
304,000 |
|
Inventory, December 31, 2020 |
250,000 |
|
Unearned service revenue |
8,800 |
|
Accrued interest payable |
2,000 |
|
Dividends declared |
58,000 |
|
Patents |
200,000 |
|
Retained earnings, January 1, 2020 |
580,000 |
|
Interest expense |
34,000 |
|
General and administrative expenses |
300,000 |
|
Accounts payable |
120,000 |
|
Allowance for doubtful accounts |
10,000 |
|
Notes payable (maturity 7/1/25) |
400,000 |
|
Machinery and equipment |
900,000 |
|
Materials and supplies |
80,000 |
Note: The amount of income taxes was ¥91,200, including the tax effect of the discontinued operations loss which amounted to ¥24,000.
Instructions:
Prepare an income statement and retained earnings statement for 2020 for Al-Arab Company that is presented in accordance with IFRS (including format and terminology).
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