Question 2:

The adjusted balance for Actinolite Automobiles Inc. at December 31, 2023 is presented below. Actinolites 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.

Actinolite Automobiles Inc. Adjusted Trial Balance December 31, 2023
	Debit	Credit
Accounts payable		$44,620
Accounts receivable	$25,430
Accumulated depreciation equipment		14,300
Accumulated depreciation building		95,500
Accumulated other comprehensive income Jan 1, 2023	0
Advertising expense	9,700
Building	400,000
Cash	157,000
Cash dividends common	10,000
Common shares (10,000 shares issued)		250,000
Contributed surplus reacquisition of common shares		6,000
Cost of goods sold	417,000
Depreciation expense	20,000
Dividends payable		10,000
Equipment	80,000
Gain on sale of equipment		850
Income tax expense	0
Income tax payable		0
Interest expense	2,550
Merchandise inventory	66,140
Office expense	8,500
Other comprehensive income holding loss on equity investment (before income tax)	2,250
Retained earnings Jan 1, 2023		57,300
Sales		720,000
TOTALS	1,198,570	1,198,570

Required:

1. Prepare a statement of comprehensive income on an all-inclusive basis (ignoring earnings per share)
2. Prepare a statement of changes in shareholders equity for the year
3. Prepare the shareholders equity section of the balance sheet at December 31, 2023