E4.9 (LO 2,3,5) (Multiple-Step Statement with Retained Earnings Statement) Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue Instructions $1,300,000 780,000 65,000 48,000 20,000 7,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2019 Casualty loss Cash dividends declared Retained earnings at December 31, 2019 Effective tax rate of 20% on all items $ 80,000 55,000 50,000 45,000 980,000 1. → Prepare a multiple step income statement for2020. Assume that 60,000 shares of common stock are outstanding for the entire year. 2. → Prepare a separate retained earnings statement for2020.
E4.9 (LO 2,3,5) (Multiple-Step Statement with Retained Earnings Statement) Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue Instructions $1,300,000 780,000 65,000 48,000 20,000 7,000 Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2019 Casualty loss Cash dividends declared Retained earnings at December 31, 2019 Effective tax rate of 20% on all items $ 80,000 55,000 50,000 45,000 980,000 1. → Prepare a multiple step income statement for2020. Assume that 60,000 shares of common stock are outstanding for the entire year. 2. → Prepare a separate retained earnings statement for2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:E4.9 (LO 2,3,5) (Multiple-Step Statement with Retained Earnings Statement) Presented below is information
related to Ivan Calderon Corp. for the year 2020.-
Net sales
Cost of goods sold
Selling expenses
Administrative expenses
Dividend revenue
Interest revenue
Instructions
$1,300,000
780,000
65,000
48,000
20,000
7,000
Write-off of inventory due to obsolescence
Depreciation expense omitted by accident in 2019
Casualty loss
Cash dividends declared
Retained earnings at December 31, 2019
Effective tax rate of 20% on all items
$80,000
55,000
50,000
45,000
980,000
1. → Prepare a multiple step income statement for2020. Assume that 60,000 shares of common stock are
outstanding for the entire year.
2. Prepare a separate retained earnings statement for2020.
→
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