Prepare a statement of changes in equity for Luxor Company for the year ended December 31, 2022. Please include your solution as well.
Prepare a statement of changes in equity for Luxor Company for the year ended December 31, 2022. Please include your solution as well.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a. Prepare a statement of changes in equity for Luxor Company for the year ended December 31, 2022.
Please include your solution as well.
Transcribed Image Text:3-4.
3-5.
Chapter 3- The Statement of Comprehensive Income
and the Statement of Changes in Equity
Direct labor payroll
Factory overhead
Freight out
Increase in work in process inventory
Required:
What is Venetian Company's cost of goods sold for 2022?
Excalibur Products had sales during 2022 of P895,000.
Excalibur's gross profit percentage is 55%.
Purchases of inventory during 2022 totaled P466,250, and a
count of inventory on hand at the end of the year totaled
P189,500. Selling expenses are 18% sales, and general and
administrative expenses equal 80% of selling expenses.
200,000
300,000
Excalibur's income tax rate is 20%, and the company has 60,000
ordinary shares outstanding.
Required:
Prepare an Income Statement for the year ended December 31,
2022, using the function of expense method of presenting
expenses.
Depreciation - building and office equipment
Sales commissions and salaries
Inventory, January 1, 2022
Store supplies expense
Retained earnings, January 1, 2022
Purchase returns and allowances
45,000
20,000
The following is a partial list of accounts, after adjustments, of
the Luxor Company on December 31, 2022:
Bad debts expense
Freight in
Sales discounts
Purchases
Delivery expense
Office supplies expense
Ordinary share capital, P10 par
Share premium
Loss on sale of equipment
Insurance and taxes
Sales
P 145,000
182,000
341,000
56,000
1,785,000
62,000
27,000
135,000
49,000
1,730,000
77,000
19,000
800,000
650,000
50,000
85,000
3,529,000
Transcribed Image Text:Chapter 3- The Statement of Comprehensive Income
and the Statement of Changes in Equity
h.
i.
Rent revenue
Office salaries
Advertising expense
Sales returns and allowances
Purchase discounts
Depreciation - store equipment
Discontinued operations (Debit)
Interest expense
Cumulative unrealized gains and losses on
debt investments carried at fair value through
other comprehensive income, Jan. 1, 2022 (Credit) 50,000
Unrealized gains recorded during the year
on debt investments at fair value through
other comprehensive income
Actuarial gains on defined benefit plan
The following information is also available:
a.
b.
C.
d.
g.
105,000
320,000
170,000
121,000
41,000
96,000
350,000
37,000
80,000
40,000
During the year, the company declared and paid a P0.75
per share cash dividend on its 80,000 ordinary shares.
A physical count determined that the December 31, 2022
inventory is P446,000.
A typhoon destroyed a warehouse resulting in a pretax
loss of P120,000.
The debit balance in the Discontinued Operations relates
to the pre-tax summarized operations and disposal of an
unprofitable line of business, which the enterprise
decided to discontinue on May 1, 2022. This line was
considered as a cash-generating unit (CGU). During the
year 2022, before the unit's actual disposal, the CGU had
revenues of P900,000 and expenses of P1,050,000. On
September 1, 2022, Luxor sold the CGU's assets at a loss
of P200,000.
The company found and corrected a pretax P180,000
understatement of the 2021 depreciation expense due to
a mathematical error.
170
During the year, Luxor issued 10,000 new ordinary
shares at an average price of P14 per share. These
amounts are already reflected in the given balances.
There were no investments disposed of during the year.
Chapter 3- The Statement of Comprehensive Income
and the Statement of Changes in Equity
The defined benefit plan has no beginning balance of
cumulative actuarial gains and losses.
The company's income tax rate is 20%. The company
has not yet recorded the company's income tax relating
to profit or loss and other comprehensive income.
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