Answer to Question #201381 in Accounting for gurneet

Question

Prepare the following four financial statements for Linden International Inc. for 2012:

1. Statement of income

2. Statement of comprehensive income

3. Statement of changes in equity

4. Statement of financial position

Income tax expense $ 600,000

Increase in property revaluation 35,000

Current assets 6,500,000

Cost of sales 7,500,000

Distribution costs 900,000

Common shares issued 895,000

Accumulated other comprehensive

income/(loss) beginning of year —

Finance costs 90,000

Stock-option compensation 40,000

Profi t before taxes 1,750,000

Retained earnings (end of year) 5,0Dividends paid 150,000

Other income 40,000

Gross profi t 3,500,000

Share capital (end of year) 3,395,000

Contributed surplus (beginning of year) 60,000

Non-current liabilities 5,000,000

Change in currency translation (income) 40,000

Retained earnings (beginning of year) 4,000,000

Administrative expenses 800,000

Total liabilities 8,000,000

Total assets 16,500,00000,000

Answer 1

Solution: