Problem 4-01

The following information is related to Sunland Company for 2020.

Retained earnings balance, January 1, 2020		$1,117,200
Sales Revenue		28,500,000
Cost of goods sold		18,240,000
Interest revenue		79,800
Selling and administrative expenses		5,358,000
Write-off of goodwill		934,800
Income taxes for 2020		1,418,160
Gain on the sale of investments		125,400
Loss due to flood damage		444,600
Loss on the disposition of the wholesale division (net of tax)		501,600
Loss on operations of the wholesale division (net of tax)		102,600
Dividends declared on common stock		285,000
Dividends declared on preferred stock		91,200

Sunland Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sunland sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

1)Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)

2)Prepare a retained earnings statement. (List items that increase retained earnings first.)

PLEASE follow the format as listed.. The red highlighted boxes are what is needed help on. Thanks

Problem 4-01 The following information is related to Sunland Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $1,117,200 28,500,000 18,240,000 79,800 5,358,000 934,800 1,418,160 125,400 co 444,600 501,600 102,600 285,000 91,200 Sunland Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sunland sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Your answer is partially correct. Try again. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) SUNLAND COMPANY Income Statement For the Year Ended December 31, 2020 Sales Revenue 28,500,000 Cost of Goods Sold 18,240,000 Gross Profit/ (Loss) 10,260,000 Selling and Administrative Expenses 5,358,000 Income from Operations 4,902,000 Other Revenues and Gains Interest Revenue 79,800 Gain on the sale of Investments 125,400 205,200 Other Expenses and Losses Write-off of Goodwill 934,800 Loss from Flood Damage 444,600 1,379,400 Income from Continuing Operations Before Income Tax 1,986,600 Income Tax 1,418,160 Income from Continuing Operations 3,404,760 Discontinued Operations Loss on Disposal, Net of Applicable Tax 501,600 Loss on Operations, Net of Applicable Tax ) 102,600 coon 604,200 Net Income / (Loss) 2,800,560 Earnings Per Share Income from Continuing Operations 3,404,760 Discontinued Operations Loss on Disposal, Net of Applicable Tax 501,600 Loss on Operations, Net of Applicable Tax 102,600 604,200 Net Income / (Loss) 5,601,120 Your answer is partially correct. Try again. Prepare a retained earnings statement. (List items that increase retained earnings first.) SUNLAND COMPANY Retained Earnings Statement For the Year Ended December 31, 2020 Retained Earnings, January 1 1,117,200 Net Income / (Loss) 5,601,120 Your answer is partially correct. Try again. Prepare a retained earnings statement. (List items that increase retained earnings first.) SUNLAND COMPANY Retained Earnings Statement For the Year Ended December 31, 2020 Retained Earnings, January 1 1,117,200 Add Net Income /(Loss) 5,601,120 6,718,320 Less Dividends-Common Stock 285,000 Dividends-Preferred Stock 91,200 376,200 Retained Earnings, December 31 ) 6,342,120