Question
Presented below is information related to Tidal Wave Company. Retained earnings, December 31, 20X2 $ 2,350,000 Sales 2,600,000 Selling and administrative expenses 240,000 Earthquake loss
Presented below is information related to Tidal Wave Company.
Retained earnings, December 31, 20X2 | $ 2,350,000 |
Sales | 2,600,000 |
Selling and administrative expenses | 240,000 |
Earthquake loss (pre-tax) on plant (extraordinary item) | 250,000 |
Cash dividends declared on common stock | 53,600 |
Cost of good sold | 1,000,000 |
Gain resulting from computation error on depreciation charge in 2009 (pre-tax) | 520,000 |
Other revenue | 80,000 |
Other expenses | 50,000 |
Instructions: Prepare in good form a multiple-step income statement for the year 20X2. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.
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