Jogger Inc. is a private corporation reporting under ASPE. At December 31, 2021, its adjusted trial balance contained the following summary data: 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.

Question

Jogger Inc. is a private corporation reporting under ASPE. At December 31, 2021, its adjusted trial balance contained the following summary data:  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.

Quizplus · Accepted Answer

The Answer of Jogger Inc. is a private corporation reporting under ASPE. At December 31, 2021, its adjusted trial balance contained the following summary data:  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.