Hyperchip Limited is a private corporation reporting under ASPE. At December 31, 2014, its general ledger contained
Question:
Hyperchip Limited is a private corporation reporting under ASPE. At December 31, 2014, its general ledger contained the following summary data:
Cost of goods sold............................$ 950,000
Net sales........................................1,425,000
Operating expenses..............................270,000
Other expenses....................................30,000
Other revenues....................................45,000
Retained earnings, December 31, 2013....1,150,000
Additional information:
1. In 2014, common share dividends of $80,000 were declared on June 26 and December 26. The dividends were paid on July 9, 2014, and January 9, 2015, respectively.
2. The company's income tax rate is 20%.
Instructions
(a) Record the dividend transactions in 2014.
(b) Prepare a multiple-step income statement for 2014.
Taking It Further
Compare a statement of retained earnings with a statement of owner's equity.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow