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
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 |
Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Prepare a separate retained earnings statement for 2020. (List items that increase adjusted retained earnings first.)
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