Question
Presented below are some of the account balances for Sofa So Good Company. DEBITS CREDITS Retained Earnings, January 1, 2020 1,000 Sales Revenue 10,000 Cost
Presented below are some of the account balances for Sofa So Good Company. |
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| DEBITS | CREDITS | |
Retained Earnings, January 1, 2020 | 1,000 | ||
Sales Revenue | 10,000 | ||
Cost of goods sold | 4,000 | ||
Interest revenue | 40 | ||
Salary and wage expense | 1,200 | ||
Rent expense | 1,000 | ||
Insurance expense | 300 | ||
Depreciation expense | 200 | ||
Supplies expense | 100 | ||
Write off of Goodwill | 400 | ||
Gain in sale of investments | 500 | ||
Loss due to meteor strike | 300 | ||
Loss on sale of discontinued plastic bag division (pretax) | 700 | ||
Loss on operations of discontinued plastic bag division (pretax) | 400 | ||
Dividends declared on preferred stock | 200 | ||
Dividends declared on common stock | 100 | ||
Income tax rate | 30% |
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Number of common shares authorized, issued and outstanding |
| 100 | |
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INSTRUCTIONS: |
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Prepare a multi-step income statement in proper format for the year ended December 31, 2020. |
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