You are here

Home » Introduction to Financial Accounting (Second Edition) » Proprietorships and Partnerships » Assignment Materials » Comprehension Problems

CP 12–2

14 August, 2015 - 17:32
Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.

Refer to CP 12–1. Assume that the proprietorship is instead a corporation named R. Black Ltd., with 1,000 common shares issued on January 1, 2016 for a stated value of $5 per share. Assume there are no opening retained earnings and consider withdrawals to be dividends. Assume income taxes expense applies to corporate earnings.

Required:

  1. Prepare an income statement for the year ended December 31, 2016.
  2. Prepare a statement of changes in equity.
  3. Prepare a balance sheet at December 31, 2016.
  4. Prepare closing entries at year-end.
  • 1528 reads