Hello,

I'd like to be able to distinguish the two.

Thank You,

CP 12-1 You are given the following data for the proprietorship of R. Black. R. Black Proprietorship Trial Balance December 31, 2019 Debit Credit 10,000 as Accounts receivable Merchandise inventory Accounts payable R. Black, capital R. Black, withdrawals Sales Cost of goods sold Rent expense Income taxes expense 20,000 30,000 $25.000 5,000 7,000 166,000 100,000 24,000 5,000 Totals 196,000 $196,000 Black contributed $5,000 capital during the year. Required. 1. Prepare an income statement for the year 2. Prepare a statement of proprietor's capital for the year in the following format R. Black Proprietorship Statement of Proprietor's Capital For the Year Ended December 31, 2019 Balance at Jan. 1, 2019 Contributions Net income Withdrawals Balance at Dec. 31, 2019 3. 4. Prepare a balance sheet at December 31, 2019 Prepare closing entries at vear-end CP 12-2 Refer to CP 12-1. Assume that the proprietorship is instead a corporation named R. Black Ltd., with 1,000 shares of common stock issued on January 1, 2019 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, 2019 Prepare a statement of changes in equity. Prepare a balance sheet at December 31, 2019 Prepare closing entries at year-end. 2. 3. 4