1. Prepare a multi-step statement of fiancial performance for 2020 showing expenses by function. Ignore calculation of EPS.2. Prepared a retained earnings section of the statement of changes in equity for 2020.3. Prepare a journal entry to record the depreciation expense omitted by mistake in 2019. The following is information for Bridgeport Corp. for the year ended December 31, 2020:Sales revenueUnrealized gain on FV-OCI equityinvestmentsInterest incomeCost of goods soldSelling expensesAdministrative expensesDividend revenue$1,180,00043,0009,000708,00059,00049,00016,000Loss on inventory due to decline in net realizable valueLoss on disposal of equipmentDepreciation expense related to buildings omitted bymistake in 2019Retained earnings at December 31, 2019Loss from expropriation of landDividends declared$77,00045,00058,000940,00064,00048,000The effective tax rate is 20% on all items. Bridgeport prepares financial statements in accordance with IFRS. The FV-OCI equityinvestments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.

Answered: Prepare a multi-step statement of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Prepare a multi-step statement of fiancial performance for 2020 showing expenses by function. Ignore calculation of EPS.

2. Prepared a retained earnings section of the statement of changes in equity for 2020.

3. Prepare a journal entry to record the depreciation expense omitted by mistake in 2019.

The following is information for Bridgeport Corp. for the year ended December 31, 2020:
Sales revenue
Unrealized gain on FV-OCI equity
investments
Interest income
Cost of goods sold
Selling expenses
Administrative expenses
Dividend revenue
$1,180,000
43,000
9,000
708,000
59,000
49,000
16,000
Loss on inventory due to decline in net realizable value
Loss on disposal of equipment
Depreciation expense related to buildings omitted by
mistake in 2019
Retained earnings at December 31, 2019
Loss from expropriation of land
Dividends declared
$77,000
45,000
58,000
940,000
64,000
48,000
The effective tax rate is 20% on all items. Bridgeport prepares financial statements in accordance with IFRS. The FV-OCI equity
investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income.

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Step 1

Statement of Financial Performance consists of Balance Sheet, Income Statement and Cash Flow Statement. In this questions, we are asked to prepare the Income Statement part of the Financial Statement to know the Company's Income and Expenditure.

Statement of Changes in Equity shows all those events that occurred throughout the year and lead to a change in the Balance of Equity

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