Chapter 4

1. The following information was taken from the records of Vega Inc. for the year 2015:
income tax applicable to income from continuing operations R$119,000, income tax
applicable to loss on discontinued operations R$25,500, and unrealized holding gain on
non-trading equity securities R$15,000.

Gain on sale of plant assets R$ 95,000 Cash dividends declared R$ 150,000

Loss on discontinued operations 75,000 Retained earnings January 1, 2015 600,000
Administrative expenses 240,000 Cost of goods sold 850,000
Rent revenue 40,000 Selling expenses 300,000
Loss on impairment of land 60,000 Sales revenue 1,700,000

Ordinary shares outstanding during 2015 were 100,000.

Instructions
a. Prepare a comprehensive income statement for 2015 using the one statement approach.
b. Prepare a retained earnings statement for 2015.

2. The equity section of Hasbro Inc. at January 1, 2015, was as follows.

Share capital—ordinary $ 300,000

Accumulated other comprehensive income :
Unrealized holding gain on non-trading equity securities 50,000
Retained earnings 20,000

During the year, the company had the following transactions.

1. Issued 10,000 shares at $3 per share.
2. Dividends of $9,000 were declared and paid.
3. Net income for the year was $100,000.
4. Unrealized holding loss of $5,000 occurred on its non-trading equity securities.

Instructions
Prepare a statement of changes in equity for Hasbro Inc.
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