Chapter 7
Corporations: The Financial Statements
370
a) Prepare a multi-step income statement for the year ended March 31, 2016 under ASPE.
Ignore taxes for this question.
b) Retained earnings at April 1, 2015 had a credit balance of $68,335 and dividends of
$14,150 were declared and paid in the year. Prepare a statement of retained earnings for
the year ended March 31, 2016.
c) Prepare a classified balance sheet as at March 31, 2016. Additional information as of March
31, 2016 is as follows.
• The long term debt is due over four years. The principal payments are $275 each
month.
• Preferred shares: $0.50, non-cumulative, 15,000 shares authorized, 13,233 shares
issued and outstanding
• Common shares: 21,000 shares authorized, 19,550 shares issued and outstanding
• The note receivable will not be paid until December 2017.
