Choke Cherry Ltd. is a private company reporting under ASPE. Its adjusted trial balance at its fiscal year end, December 31, 2024, is shown below: 

Instructions 

Prepare a multi-step income statement, statement of retained earnings, and balance sheet. 

Compare dividends paid to owners of corporations with withdrawals by owners of proprietorships or partnerships.

Transcribed Image Text:

Cash Inventory Supplies Equipment Accumulated depreciation-equipment Accounts payable Income tax payable Unearned revenue CHOKE CHERRY LTD. Adjusted Trial Balance December 31, 2024 Notes payable ($12,000 is due in 2025) 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 Depreciation expense Income tax expense Insurance expense Interest expense Rent expense Salaries expense Supplies expense Debit $ 28,000 26,500 5,000 300,000 4,000 50,000 159,000 20,000 14,385 8,200 1,800 32,600 185,000 12,500 $846,985 Credit $ 65,000 34,000 8,985 21,000 30,000 40,000 60,000 73,000 515,000 $846,985