Answered: Required: 1. Prepare a single-step…

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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Question

44.

Sunject :- Accunting

The following items were taken from the adjusted trial balance of the Bremeur Corp. on 31 December 20X5. Assume an average 20%
income tax on all items (including the divestiture loss). The accounting period ends 31 December. All amounts given are pre-tax and
subject to the same income tax rate. Bremeur had 24,000 shares outstanding at the beginning of the year. On 31 August 20X5, an
additional 9,000 shares were issued, at the end of 20X5, 33,000 shares were outstanding
Sales revenue from continuing operations
Revenue in business segment being discontinued
Rent revenue
Interest revenue
Gain on sale of investments
Distribution expenses
General and administrative expenses
Operating expenses in business segment being discontinued
Interest expense
Depreciation and amortization
Settlement of legal claim against the company
Asset impairments, discontinued operation
Cost of goods sold
$732,700
90,000
3,900
1,650
3,500
151,000
125,000
85,500
3,000
7,500
11,500
13,500
345,000
Required:
1. Prepare a single-step income statement (Round "Earnings per share" answers to 2 decimal places. Loss amounts should be
indicated by a minus sign.)

Transcribed Image Text:On 2 October 20X4, a national hardware retailer, One Hardware Corporation, announced a formal plan to refocus its operations. As part of the plan, management decided to sell its portfolio of contractor-specific locations, which operated under the brand Contract Yard. The sale would allow the company to focus on improving its larger, more profitable retail stores. The division is its own operating segment and therefore must be reported as a discontinued operation. The sale of Contract Yard was finalized on 4 December 20X4 Information relating to Contract Yard for the year ended 31 December 20X4 is as follows (in thousands of Canadian dollars) • Net income from continuing operations, before tax: $50,802 • Earnings from discontinued operations (2 January 20X4-2 October 20X4), before tax $2,260 • Loss from discontinued operations (2 October 20X4-4 December 20X4), before tax $337 • Gain on disposal of net assets, before tax: $1,221 One Hardware Corporation has a tax rate of 20% and reports in accordance with IFRS. Required: Prepare a partial SCI for One Hardware Corporation pertaining to the discontinued operations of Contract Yard in 20X4. (Enter your answers to 2 decimal places.) Net income from continuing operations Discontinued operations Total gain (loss) on discontinued operations, net of tax

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