Choke Cherry Ltd. is a private company reporting under ASPE. Its adjusted trial balance at its fiscal year end, December 31, 2014, is shown below:

Instructions
(a) Prepare an income statement, statement of retained earnings, and balance sheet.
(b) Journalize the closing entries.
Taking It Further
What are the differences between dividends paid to owners of corporations and withdrawals by owners of proprietorships or partnerships?

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CHOKE CHERRY LTD Adjusted Trial Balance December 31, 2014 Credit $28,000 Accumulated depreciation-equipment Note payable ($12,000 is due in 2015) Preferred shares ($4 noncumulative, 1,000 issued) Common shares (120,000 issued) Cash dividends-preferred Cash dividends-common Depreciation expense $846,985 $846,985