The following information is related to Dickinson Company for the year ended December 31, 2020. Retained earnings balance, January 1, 2020 $980,000 25,000,00 Sales revenue 16,000,00 Cost of goods sold Gain on life insurance proceeds 70,00-| Selling, general, and administrative expenses 4,700,000 Write-off of goodwill 820,000 Gain on the sale of investments 110,000 Loss due to write-down of inventory to NRV 390,000 Loss on the disposition of the wholesale division 530,000 Income tax rate 30% Dividends declared on common stock 250,000 Dividends declared on preferred stock Common shares outstanding 80,000 500,000 Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal considered a discontinued operation. Instructions: Prepare a retained earnings statement.
The following information is related to Dickinson Company for the year ended December 31, 2020. Retained earnings balance, January 1, 2020 $980,000 25,000,00 Sales revenue 16,000,00 Cost of goods sold Gain on life insurance proceeds 70,00-| Selling, general, and administrative expenses 4,700,000 Write-off of goodwill 820,000 Gain on the sale of investments 110,000 Loss due to write-down of inventory to NRV 390,000 Loss on the disposition of the wholesale division 530,000 Income tax rate 30% Dividends declared on common stock 250,000 Dividends declared on preferred stock Common shares outstanding 80,000 500,000 Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal considered a discontinued operation. Instructions: Prepare a retained earnings statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following information is related to Dickinson Company for the year ended December 31, 2020.
Retained earnings balance, January 1, 2020
$980,000
25,000,00
Sales revenue
16,000,00
Cost of goods sold
Gain on life insurance proceeds
70,00-|
Selling, general, and administrative expenses
4,700,000
Write-off of goodwill
820,000
Gain on the sale of investments
110,000
Loss due to write-down of inventory to NRV
Loss on the disposition of the wholesale division
390,000
530,000
Income tax rate
30%
Dividends declared on common stock
250,000
Dividends declared on preferred stock
Common shares outstanding
80,000
500,000
Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal is
considered a discontinued operation.
Instructions: Prepare a retained earnings statement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb26c1071-7c96-4aac-b283-dd50334d00f0%2F48bba6ff-e278-44f8-a037-ba83b7272d37%2F3ry7j2e_processed.png&w=3840&q=75)
Transcribed Image Text:The following information is related to Dickinson Company for the year ended December 31, 2020.
Retained earnings balance, January 1, 2020
$980,000
25,000,00
Sales revenue
16,000,00
Cost of goods sold
Gain on life insurance proceeds
70,00-|
Selling, general, and administrative expenses
4,700,000
Write-off of goodwill
820,000
Gain on the sale of investments
110,000
Loss due to write-down of inventory to NRV
Loss on the disposition of the wholesale division
390,000
530,000
Income tax rate
30%
Dividends declared on common stock
250,000
Dividends declared on preferred stock
Common shares outstanding
80,000
500,000
Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal is
considered a discontinued operation.
Instructions: Prepare a retained earnings statement.
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