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Presented below is information related to Wildhorse Corp. for the year 2020. Net sales $ 1,482,000 Write-off of inventory due to obsolescence $ 91,200 Cost
Presented below is information related to Wildhorse Corp. for the year 2020. Net sales$1,482,000Write-off of inventory due to obsolescence$91,200Cost of goods sold 889,200Depreciation expense omitted by accident in 2019 62,700Selling expenses 74,100Casualty loss 57,000Administrative expenses 54,720Cash dividends declared 51,300Dividend revenue 22,800Retained earnings at December 31, 2019 1,117,200Interest revenue 7,980Effective tax rate of 20% on all items
(a) Prepare a multiple-step income statement for 2020. Assume that 69,312 shares of common stock are outstanding for the entire year (b) Prepare a separate retained earnings statement for 2020.
Net sales
$1,482,000Write-off of inventory due to obsolescence
$91,200Cost of goods sold
889,200Depreciation expense omitted by accident in 2019
62,700Selling expenses
74,100Casualty loss
57,000Administrative expenses
54,720Cash dividends declared
51,300Dividend revenue
22,800Retained earnings at December 31, 2019
1,117,200Interest revenue
7,980Effective tax rate of 20% on all items
| (a) | Prepare a multiple-step income statement for 2020. Assume that 69,312 shares of common stock are outstanding for the entire year | |||||
|---|---|---|---|---|---|---|
| (b) | Prepare a separate retained earnings statement for 2020. | |
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Financial Accounting
Authors: Michael J. Jones
2nd Edition
1119977150, 978-1119977155
