LOS How is the complete corporate income statement prepared

LOS. How is the complete corporate income statement prepared? What may appear on a corporation\'s income statement that generally does not appear for smaller business? a) LO6. How is equity reported for a corporation? a) What is included on the statement of retained earnings?

Solution

1-Cost of goods sold which generally appears on income statement of Corporation but not on income statement of small corporation

2-Statement of retained earning includes Beginning balance of retained earning, plus net income and subtract the amount of dividend paid

Year end balance of retained earning = Beginning balance of retained earning + net income - dividend to be paid