Question
4-9 (LO3,4,5) (Multiple-Step Statement with Retained Earnings Statement) Presented below is information related to Ivan Calderon Corp. for the year 2017. Net sales$1,300,000Write-off of inventory
4-9 (LO3,4,5) (Multiple-Step Statement with Retained Earnings Statement) Presented below is information related to Ivan Calderon Corp. for the year 2017. Net sales$1,300,000Write-off of inventory due to obsolescence$80,000Cost of goods sold780,000Depreciation expense omitted by accident in 201655,000Selling expenses65,000Casualty loss50,000Administrative expenses48,000Cash dividends declared45,000Dividend revenue20,000Retained earnings at December 31, 2016980,000Interest revenue7,000Effective tax rate of 34% on all items Instructions (a) Prepare a multiple-step income statement for 2017. Assume that 60,000 shares of common stock are outstanding for the entire year. (b) Prepare a separate retained earnings statement for 2017.
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