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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.

FINANCIAL ACCOUNTING
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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a. Prepare a statement of changes in equity for Luxor Company for the year ended December 31, 2022. 

Please include your solution as well. 

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: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
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.
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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