Austrian Limited is a private corporation reporting under ASPE. At December 31, 2015, its general ledger contained the following summary data: Additional information:
1. In 2015 dividends of $35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2015 and January 15, 2016 respectively.
2. The company's tax rate is 33%.
Instructions
a. Determine the income tax expense and prepare a multi step income statement for 2015.
b. Prepare a statement of retained earnings for 2015.

Question

Austrian Limited is a private corporation reporting under ASPE. At December 31, 2015, its general ledger contained the following summary data:  Additional information:
1. In 2015 dividends of $35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2015 and January 15, 2016 respectively.
2. The company's tax rate is 33%.
Instructions
a. Determine the income tax expense and prepare a multi step income statement for 2015.
b. Prepare a statement of retained earnings for 2015.

Quizplus · Accepted Answer

The Answer of Austrian Limited is a private corporation reporting under ASPE. At December 31, 2015, its general ledger contained the following summary data:  Additional information:
1. In 2015 dividends of $35,000 were declared on July 1 and December 31 respectively. The dividends were paid on August 10, 2015 and January 15, 2016 respectively.
2. The company's tax rate is 33%.
Instructions
a. Determine the income tax expense and prepare a multi step income statement for 2015.
b. Prepare a statement of retained earnings for 2015.

Austrian Limited Is a Private Corporation Reporting Under ASPE