Financial Accounting: IFRS

Exercise S1-3
Classifying assets, liabilities and owners' equity Students: Please fill-in areas that are shaded.

Student Name
Course Name
Student ID:
Date:

Consider Carrefour, a large retailer. Classify the following items as Asset (A), Liability (L), or Shareholders' Equity (E) for
carrefour:

a. Accounts receivable g. Accounts payable

b. Long-Term debt h. Share capital
c. Merchandise inventory i. Supplies
d. Notes payable j. Retained earnings
e. Expenses payable k. Land
f. Equipment l. Prepaid expenses
 Financial Accounting: IFRS
Exercise S1-9 Students: Please fill-in areas that are
Prepare an Income Statement shaded.

Student Name
Course Name
Student ID:
Date:

Barbed Wires began 20X6 with total assets of $160 million and ended 20X6 with assets of $190 million. During 20X
Barbed Wires earned revenues of $131 million and had expenses of $54 million. Barbed Wires
paid dividends of $13 million in 20X6. Prepare the company’s Income Statement for the year
ended December 31, 20X6, complete with an appropriate heading.

Barbed wires Inc.

Income Statement

Revenues…………………………………………………………………… $
Expenses …............................................................
Net income ……………………………………………………………… $
Please fill-in areas that are

of $190 million. During 20X6

Wires
year

Millions
 Financial Accounting: IFRS
Exercise S1-10 Students: Please fill-in areas that are
Prepare a Statement of Changes in Equity shaded.

Student Name
Course Name
Student ID:
Date:

Roam Corp. began 20X6 with retained earnings of $300 million and share capital of $125 million. Revenues during
the year were $510 million and expenses totaled $325 million. Roam declared and paid dividends of $15 million.
What was the company’s ending balance of retained earnings? To answer this question, prepare Roam’s statement
of changes in equity for the year ended December 31, 20X6, complete with its proper heading.

Total Equity, Januari 1, 20X6 $

Add: Net income

Less: Dividends
Total equity, December 31, 20X6 $

What was the company’s ending balance of retained earnings? $

Please fill-in areas that are

5 million. Revenues during

dividends of $15 million.
, prepare Roam’s statement
eading.

Millions

0.0
 Financial Accounting: IFRS
Exercise S1-11
Prepare a Balance sheet Students: Please fill-in areas tha

Student Name
Course Name
Student ID:
Date:

At December 31, 20X6, Grande Products has cash of $15,000, receivables of $22,000, and inventory of $20,000
equipment totals $49,000. Grande owes accounts payable of $21,000, and long-term notes payable of $50,000
amounts to $35,000.
Prepare Grande’s Balance Sheet at December 31, 20X6, complete with its proper heading.
Use the accounting equation to compute retained earnings.

Grande Products
Balance Sheet
As at December 31, 20X6
ASSETS LIABILITIES

Total liabilities
SHAREHOLDERS' EQUIT

Retained earnings
Total shareholders' equity

Total liabilities and

Total assets $ - shareholders' equity
S

s: Please fill-in areas that are shaded.

nd inventory of $20,000. The company’s

otes payable of $50,000. Share capital

ng.

LIABILITIES

$ -
SHAREHOLDERS' EQUITY

$ -

olders' equity
 Financial Accounting: IFRS
exercise S1-12 Students: Please fill-in areas
that are shaded light-yellow.

Student Name
Course Name
Student ID:
Date:

Lanos Medical, Inc., ended 20X5 with cash of $30,000. During 20X6, Lanos earned net income of $72,100 and
had adjustments to reconcile net income to net cash provided by operations totaling $22,000 (this is
a negative amount). Lanos paid $45,000 to purchase equipment during 20X6. During 20X6, the company paid
dividends of $10,700.
Prepare Lanos’ statement of cash flows for the year ended December 31, 20X6, complete with its proper
heading.

Lanos Medical, Inc.

Statement of Cash Flows
Year Ended June 30, 20X6
Cash flows from operating activities:
Net income……………………………………………………………………
Adjustments to reconcile net income to
net cash provided by operating activities:
Net cash provided by operating activities……………………………………………….

Cash flows from investing activities:

Purchases of equipment
Net cash used for investing activities…………………………..

Cash flow from financing activities:

Payment of dividends
Net cash provided by financing activities…………………….
Net (decrease) in cash………………………………………………………………………………
Cash balance, June 30, 20X5…………………………………………………………………..
Cash balance, June 30, 20X6…………………………………………………………………..
 ents: Please fill-in areas
are shaded light-yellow.

et income of $72,100 and

g $22,000 (this is
g 20X6, the company paid

mplete with its proper

$ -

$ -

$ -
$ -

$ -
 Financial Accounting: IFRS
Exercise E1-16A Students: Please fill-in areas that are
Using the accounting equation shaded.

Student Name
Course Name
Student ID:
Date:

Compute the missing amount in the accounting equation for each company
(amounts in thousands):

Assets Liabilities Owners' Equity

Alpha ? $12
Bravo 21 ?
Charlie 44 21

Which company appears to have the strongest financial position? Explain your reasoning.
S
udents: Please fill-in areas that are
haded.

Owners' Equity
$20
5
?

ng.
 Financial Accounting: IFRS
Exercise E1-17A
Using the accounting equation Students: Please fill-in areas that are

Student Name
Course Name
Student ID:
Date:

Double Doughnuts has current assets of $250 million; property, plant and equipment of $440 million; and other assets to
million. Current liabilities are $120 million and long-term liabilities total $300 million.

1. Use the data to write Double Doughnuts’ accounting equation.

Assets = Liabilities +

$0 = $0 +

2. How much in resources does Double Doughnuts’ have to work with?

3. How much does Double Doughnuts’ owe creditors?

4. How much of the company’s assets do the Double Doughnuts’ shareholders actually own?
FRS

udents: Please fill-in areas that are shaded.

of $440 million; and other assets totaling $100

Owners' Equity
 Financial Accounting: IFRS
Exercise 1-21A - Obj. 3, 4
Apply the accounting equation; construct a balance sheet Students: Please fill-in areas that are shaded.

Student Name
Course Name
Student ID:
Date:

Amounts of the assets and liabilities of Angelababy Company, as of January 31, 20X6, are given as follows. The revenue
and expense figures for the year ended on that date (amounts in millions) are also included:

Total revenue ....................................... $38.8 Investment assets…..................

Receivables........................................... 0.8 Property and equipment, net .......
Current liabilities ................................. 2.0 Other expenses............................
Share capital ..................................... 14.3 Retained earnings, beginning.......
Interest expense.................................... 0.7 Retained earnings, ending ...........
Salary and other employee expenses..... 17.5 Cash………………………………………………
Long-term liabilities............................... 3.0 Other assets............................

Test Your Knowledge

Exercise 1-21A
Instructions
Prepare the Balance Sheet of Angelababy Company at January 31, 20X6. Use the accounting
equation to compute ending retained earnings.

Angelababy Company
BALANCE SHEET (Adapted: Amounts in millions)

ASSETS LIABILITIES

Total liabilities
SHAREHOLDERS' EQUITY

Retained earnings
Total shareholders' equity
Total liabilities and
Total assets shareholders' equity
n areas that are shaded.

en as follows. The revenue

$15.0
16.6
6.7
8.2
CALCULATE
2.5
5.0

ITIES

ERS' EQUITY
 Financial Accounting: IFRS
Exercise 1-22A, Obj. 3, 4 Students: Please fill-in areas that are
Prepare an Income Statement and a Statement of Changes in Equity shaded.

Student Name
Course Name
Student ID:
Date:

This exercise should be used with Exercise 1-21A. Refer to the data of Angelababy Company in Exercise 1-21A.

Total revenue ....................................... 38.8 Investments …...........................

Receivables........................................... 0.8 Property and equipment, net .......
Current liabilities ................................. 2 Other expenses............................
Share capital …......................................... 14.3 Retained earnings, beginning.......
Interest expense.................................... 0.7 Retained earnings, ending ...........
Salary and other employee expenses..... 17.5 Cash………………………………………………
Long-term liabilities............................... 3.0 Other assets............................

Test Your Knowledge

Exercise 1-22A
Instructions:
1. Prepare the income statement of Angelababy Company for the year ended January 31, 20X6.

2. What amount of dividends did Angelababy Company declare during the year ended January 31, 20X6?
( Hint: Prepare a statement of changes in equity.)

Requirement 1
Angelababy Company
Income Statement (Amounts in millions)
Year Ended January 31, 20X6

Total revenue……………………………………………………………………
Expenses:

Total expenses……………………………………………………..
Net income ……………………………………………………………………….
Requirement 2
Statement of changes in equity (Amounts in millions)
Total Equity, beginning of year…………………………………….
Add: Net income for the year (Req. 1)……………………………….

Less: Dividends …………………………………………………………………….

Total equity, end of year (from Exercise 1-21A)………..
Please fill-in areas that are

pany in Exercise 1-21A.

15
16.6
6.7
8.2
CALCULATE
2.5
5.0

anuary 31, 20X6.

ended January 31, 20X6?

38.8
ons)
22.5

22.5
 Financial Accounting: IFRS
Exercise P1-56A
Using the accounting equation, evaluating business operations

Student Name
Course Name
Student ID:
Date:

Compute the missing amount (?) for each company, amounts in millions.

Gilbert Corp. Mandy Co.

Beginning
Assets $80.00 $40.00
Liabilities 43 25
Share capital 9 3
Retained earnings ? 12

Ending
Assets ? $42.00
Liabilities 48 24
Share capital 3 ?
Retained earnings 33 ?

Income Statement
Revenues $218.00 ?
Expenses 210 152
Net Income ? ?

Retained earnings
Beginning retained earnings $28.00 $12.00
+ Net income ? 9
- Dividends -3 -5
= Ending retained earnings $33 $16
ng: IFRS

Students: Please fill-in areas that are shaded.

Gurbir Inc

?
1
2
5

$8.00
?
1
?

$12.00
?
?

$5.00
4
-2
$7
 Financial Accounting: IFRS
Exercise P1-68B
Analyzing a company's financial statements

Student Name
Course Name
Student ID:
Date:

Summarized versions of Espinola Corporation's financial statements for two recent years follow.

Requirement
1. Complete Espinola Corporation’s financial statements by determining the missing amounts as
denoted by the letters.

INCOME STATEMENT
Revenues
Cost of goods sold
Other expenses
Income before income taxes
Income taxes (35% tax rate
Net income

STATEMENT OF CHANGES IN EQUITY

Beginning balance
Shares bought back
Net income
Dividends
Ending balance

BALANCE SHEET
Assets:
Cash
Property, plant and equipment
Other assets
Total assets

Liabilities:
Current liabilities
Notes payale and long-term debt
Other liabilties
Total liabilities
Shareholders’ Equity:
Share capital
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity

STATEMENT OF CASH FLOWS

Net cash provided by operating activities
Net cash used for investing activities
Net cash provided by financing activities
Increase (decrease) in cash
Cash at beginning of year
Cash at end of year
g: IFRS
Students: Please fill-in areas
that are shaded.

s follow.

ssing amounts as

20X7 20X6
(in thousands)
k 15,300
-11,010 (a)
-1,300 -1,200
1,600 1,800
(l) -630
€ m € b

€ n 3,430
-77 0
o c
-98 -200
€ p € d

€ q € e
2,006 1,830
r 10,500
€ s 13,565

€ t 5,800
4,600 3,300
60 65
8,986 f
 479 556
u g
v 4,400
€ w € h

€ x 840
-230 -330
-480 -475
-80 i
y 1,200
€ z € j
SEE BOOK