The adjusted trial balance for Aster Automobiles Inc. at December 31, 2024, is presented below. Aster’s income tax rate is 25% and journal entries for income tax expense have not yet been prepared. There were no common share transactions during the year.

Instructions 

a. Prepare a statement of comprehensive income on an all-inclusive basis. Use a multi-step format for the profit or loss section. (Ignore earnings per share.) 

b. Prepare a statement of changes in shareholders’ equity for the year. 

c. Prepare the shareholders’ equity section of the balance sheet at December 31, 2024. 

Why is it important to report the changes that took place in shareholders’ equity during the year?

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Accounts payable Accounts receivable Accumulated depreciation-building Accumulated depreciation equipment Accumulated other comprehensive income (loss)-January 1, 2024 Advertising expense Building Cash Cash dividends-common ASTER AUTOMOBILES INC. Adjusted Trial Balance December 31, 2024 Common shares (10,000 shares issued) Contributed surplus-reacquisition of common shares Cost of goods sold Depreciation expense Dividends payable Equipment Gain on sale of equipment Income tax expense Income tax payable Interest expense Merchandise inventory Office expense Other comprehensive income-holding loss on equity investment (before income tax) Retained earnings-January 1, 2024 Sales Debit $ 25,430 0 5,860 375,000 170,000 5,000 356,000 19,000 85,000 0 2,650 73,460 9,000 3,400 $1,129,800 Credit $ 44,620 95,500 14,300 245,000 5,500 900 800 0 53,180 670,000 $1,129,800