(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: 2020 2019 Preferred shares classified as equity $145,000 $145,000 Common shares: 9,000 shares in 2020, 10,000 shares in 2019 142,000 160,000 Contributed surplus—reacquisition of common shares 3,500 –0– Cash dividends—preferred 6,250 6,250 Stock dividends—common 14,000 –0– Retained earnings (balance after closing entries) 300,000 240,000 At December 31, 2020, the following information is available: Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000. During 2020, 1,000 common shares were issued as a stock dividend. Mandrich Inc. chooses to classify dividends paid as financing activities. Instructions a. Calculate net income for the fiscal year ended December 31, 2020. d. Assume now that the preferred shares are term preferred shares classified as debt. Repeat part (a). I ONLY REQUIRE D TO BE COMPLETED PLEASE AND THANK YOU

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS:

The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS:

	2020	2019
Preferred shares classified as equity	$145,000	$145,000
Common shares: 9,000 shares in 2020, 10,000 shares in 2019	142,000	160,000
Contributed surplus—reacquisition of common shares	3,500	–0–
Cash dividends—preferred	6,250	6,250
Stock dividends—common	14,000	–0–
Retained earnings (balance after closing entries)	300,000	240,000

At December 31, 2020, the following information is available:

Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000.
During 2020, 1,000 common shares were issued as a stock dividend.
Mandrich Inc. chooses to classify dividends paid as financing activities.

Instructions
a. Calculate net income for the fiscal year ended December 31, 2020.

d. Assume now that the preferred shares are term preferred shares classified as debt. Repeat part (a). I ONLY REQUIRE D TO BE COMPLETED PLEASE AND THANK YOU

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