Chapter 7
Corporations: The Financial Statements
364
Required
a) Prepare a multi-step income statement for the year ended December 31, 2016 under
ASPE. Ignore income taxes.
b) The retained earnings at January 1, 2016 were $160,305 and dividends of $48,500
were declared in the year. Prepare a statement of retained earnings for the year ended
December 31, 2016.
