Zurich Limited is a private corporation reporting under ASPE. At December 31, 2024, its general ledger contained the following summary data: 

Cost of goods sold ..................................................................................... $1,225,000 

Interest expense ............................................................................................     35,000 

Interest revenue ...............................................................................................  12,500 

Operating expenses ........................................................................................210,000 

Retained earnings, January ........................................................................ 1 550,000 

Sales ...............................................................................................................1,650,000

Additional information: 

1. In 2024, common share dividends of $25,000 were declared on June 30 and December 31. The dividends were paid on July 8, 2024, and January 8, 2025, respectively. 

2. The company’s income tax rate is 20%.

Instructions 

a. Record the dividend transactions in 2024. 

b. Determine income tax expense and prepare a multiple-step income statement for 2024. 

c. Prepare a statement of retained earnings for 2024. 

Compare a statement of retained earnings with a statement of owner’s equity.