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