Choke Cherry Ltd. is a private company reporting under ASPE. Its adjusted trial balance at its fiscal year end, December 31, 2021, is shown below:

Instructions

Prepare an income statement, statement of retained earnings, and balance sheet.

Taking It Further

Compare dividends paid to owners of corporations with withdrawals by owners of proprietorships or partnerships.

Transcribed Image Text:

CНОKE CHERRY LTD. Adjusted Trial Balance December 31, 2021 Debit Credit Cash $ 28,000 Inventory Supplies 26,500 5,000 Equipment Accumulated depreciation-equipment Accounts payable Income tax payable 300,000 $ 65,000 34,000 8,985 Unearned revenue 21,000 Notes payable ($12,000 is due in 2022) Preferred shares ($4 noncumulative, 1,000 issued) Common shares (120,000 issued) Retained earnings Cash dividends-preferred 30,000 40,000 60,000 73,000 4,000 Cash dividends-common 50,000 Sales 515,000 Cost of goods sold 159,000 Depreciation expense Income tax expense Insurance expense Interest expense 20,000 14,385 8,200 1,800 Rent expense Salaries expense Supplies expense 32,600 185,000 12,500 $846,985 $846,985