Austrian Limited is a private corporation reporting under ASPE. At December 31, 2021, its general ledger contained the following summary data: Additional information:
1. In 2021 dividends of $ 35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2021 and January 15, 2022 respectively.
2. The company's tax rate is 33%.
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.

Question

Austrian Limited is a private corporation reporting under ASPE. At December 31, 2021, its general ledger contained the following summary data:  Additional information:
1. In 2021 dividends of $ 35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2021 and January 15, 2022 respectively.
2. The company's tax rate is 33%.
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.

Quizplus · Accepted Answer

The Answer of Austrian Limited is a private corporation reporting under ASPE. At December 31, 2021, its general ledger contained the following summary data:  Additional information:
1. In 2021 dividends of $ 35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2021 and January 15, 2022 respectively.
2. The company's tax rate is 33%.
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.

Austrian Limited Is a Private Corporation Reporting Under ASPE