Problem
Assume that the proprietorship is instead a corporation named R. Black Ltd., with 1,000 shares of common stock issued on January 1, 2019 for a stated value of $5 per share. Assume there are no opening retained earnings and consider withdrawals to be dividends. Assume income taxes expense applies to corporate earnings.
Task
a) Prepare an income statement for the year ended December 31, 2019.
b) Prepare a statement of changes in equity.
c) Prepare a balance sheet at December 31, 2019.
d) Prepare closing entries at year-end.