Question
Jogger Inc. is a private corporation reporting under ASPE. At December 31, 2021, its adjusted trial balance contained the following summary data: Sales $2,200,000 Interest
- Jogger Inc. is a private corporation reporting under ASPE. At December 31, 2021, its adjusted trial balance contained the following summary data:
| Sales | $2,200,000 |
| Interest expense | 120,000 |
| Operating expenses | 660,000 |
| Cost of goods sold | 1,025,000 |
| Retained earnings January 1, 2021 | 922,000 |
Additional information:
| 1. | In 2021 dividends of $30,000 were declared on March 31, June 30, September 30 and December |
- 31 respectively. The dividends were paid on April 9, 2021, July 10, 2021, October 4, 2021 and January 12, 2022 respectively.
| 2. | The company's tax rate is 25%. |
- Instructions
| a) | Determine the income tax expense and prepare a multi-step income statement for 2021. |
| b) | Prepare a statement of retained earnings for 2021. |
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Integral Audit Acceptions Objectives And Practices
Authors: David Pavón, Catalina Rueda
1st Edition
6206302083, 978-6206302087
