answer part a
TASK#2: Income computations. Presented below is financial information of the Martin Corporation for 2020. Retained earnings, December 31, 2019 Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Gain resulting from computation error on depreciation charge in 2019 Dividends received Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Loss on write off of goodwill Dividends declared on preferred stock 605,000 160,000 45,000,000 31000.000 670,000 502,000 105,000 690,000 8,200,000 340,000 780,000 120,000 Effective tax rate on all items is 34% Martin Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Martin sold the wholesale operations. During 2020, there were 800,000 shares of common stock outstanding all year Instructions: Compute each of the following. A. Prepare the required closing entries for the year 2020. B. Prepare a retained earnings statement for the year 2020. C. Prepare in good form a multiple-step income statement for the year 2020. Page TASK#2: Income computations. Presented below is financial information of the Martin Corporation for 2020, Retained earnings, December 31, 2019 Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Gain resulting from computation error on depreciation charge in 2019 Dividends received Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Loss on write off of goodwill Dividends declared on preferred stock 605,000 160.000 45,000,000 31,000,000 670,000 502,000 105,000 690,000 8,200,000 340,000 780,000 120,000 Effective tax rate on all items is 34% Martin Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Martin sold the wholesale operations. During 2020, there were 800,000 shares of common stock outstanding all year. Instructions: Compute each of the following. A. Prepare the required closing entries for the year 2020. B. Prepare a retained earnings statement for the year 2020. C. Prepare in good form a multiple-step income statement for the year 2020. TASK#2: Income computations. Presented below is financial information of the Martin Corporation for 2020. Retained earnings, December 31, 2019 Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Gain resulting from computation error on depreciation charge in 2019 Dividends received Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Loss on write off of goodwill Dividends declared on preferred stock 605,000 160,000 45,000,000 31,000,000 670,000 502,000 105,000 690,000 8,200,000 340,000 780,000 120,000 Effective tax rate on all items is 34% Martin Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Martin sold the wholesale operations. During 2020, there were 800,000 shares common stock outstanding all year. Instructions: Compute each of the following. A. Prepare the required closing entries for the year 2020. B. Prepare a retained earnings statement for the year 2020. C. Prepare in good form a multiple-step income statement for the year 2020
