The adjusted trial balance for Aster Automobiles Inc. at December 31, 2021, is presented below. Aster?s income

Question:

The adjusted trial balance for Aster Automobiles Inc. at December 31, 2021, is presented below. Aster?s income tax rate is 25% and journal entries for income tax expense have not yet been prepared. There were no common share transactions during the year.

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Instructions

a. Prepare a statement of comprehensive income on an all-inclusive basis. (Ignore earnings per share.)

b. Prepare a statement of changes in shareholders? equity for the year.

c. Prepare the shareholders? equity section of the balance sheet at December 31, 2021.

Taking It Further

Why is it important to report the changes that took place in shareholders? equity during the year?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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