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Hana has prepared the following list of statements about corporations. Identify each statement as true or false 1 2. 3. 4. A corporation is an entity separate and distinct from its owners. As a legal entity, a corporation may buy, own, and sell property; borrow money; and enter into legally binding contracts Shareholders have the right to vote, and to receive dividends on an annual basis. The profit of a corporation is not taxed as a separate entity Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. In a public company, the transfer of shares from one owner to another requires the approval of either the corporation or other shareholders. The board of directors of a corporation is elected by the shareholders. 5. > 6. > 7. 8. Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships Pharoah Ltd. has a September 30 fiscal year end and a 15% income tax rate. The following information is available for its 2021 year end: 1. 2. 3. 4. 5. Earned $551,500 of service revenue and incurred $464,000 of operating expenses. Interest expense was $2,700. On October 5, 2020, paid $49,600 of dividends that had been declared on September 25, 2020. On September 28, 2021, declared $40,400 of dividends payable on October 8, 2021. Retained earnings on September 30, 2020, were $227,000 Issued common shares for $22,900 cash on July 2, 2021. Prepare an income statement. PHAROAH LTD. Income Statement ta $ $ Tamarisk Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2021, there were 32,500 common and 1,600 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2021, was $292,500. During 2021, the company had profit of $118,000 and declared a total of $76,000 of dividends, of which $57,000 was paid during the year. Prepare the shareholders' equity section of the balance sheet on December 31, 2021. TAMARISK LIMITED Balance Sheet (Partial) $ $ $

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