Choke Cherry Ltd. is a private company reporting under ASPE. Its adjusted trial balance at its fiscal year end, December 31, 2017, is shown below:

Instructions
Prepare an income statement, statement of retained earnings, and balance sheet.
TAKING IT FURTHER
Compare dividends paid to owners of corporations with withdrawals by owners of pro- prietorships or partnerships.

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CHOKE CHERRY LTD. Adjusted Trial Balance December 31, 2017 it Credit 28,000 26,500 5,000 300,000 Inventory Supplies Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Unearned revenue Notes payable ($12,000 is due in 2018) Preferred shares ($4 noncumulative, 1,000 issued) Common shares (120,000 issued) Retained earnings Cash dividends-preferred Cash dividends-common Sales Cost of goods sold 65,000 34,000 8,985 21,000 30,000 40,000 60,000 73,000 515,000 Income tax expense Insurance expense Interest expense Rent expense Salaries expense Supplies expense 159,000 20,000 14,385 8,200 1,800 32,600 185,000 12,500 $846,985 $846,985