Problem 4-1

The following information is related to Skysong Company for 2017.

Retained earnings balance, January 1, 2017		$989,080
Sales Revenue		26,212,500
Cost of goods sold		16,197,500
Interest revenue		78,100
Selling and administrative expenses		4,797,900
Write-off of goodwill		826,200
Income taxes for 2017		1,388,700
Gain on the sale of investments		118,000
Loss due to flood damage		392,500
Loss on the disposition of the wholesale division (net of tax)		447,800
Loss on operations of the wholesale division (net of tax)		85,280
Dividends declared on common stock		265,200
Dividends declared on preferred stock		78,940

Skysong Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Skysong sold the wholesale operations to Rogers Company. During 2017, there were 529,500 shares of common stock outstanding all year.

Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.48.)

SKYSONG COMPANY Income Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
Loss on Disposal, Net of TaxSales RevenueLoss from Flood DamageIncome TaxLoss on Operations, Net of TaxSelling and Administrative ExpensesCost of Goods SoldInterest RevenueGain on the Sale of InvestmentsWrite-off of Goodwill		$
Loss on Disposal, Net of TaxLoss from Flood DamageSales RevenueLoss on Operations, Net of TaxCost of Goods SoldGain on the Sale of InvestmentsWrite-off of GoodwillIncome TaxSelling and Administrative ExpensesInterest Revenue
Income from Continuing OperationsDiscontinued OperationsIncome from Continuing Operations Before Income TaxIncome from OperationsOther Expenses and LossesNet Income / (Loss)Earnings Per ShareGross Profit / (Loss)Other Revenues and Gains
Loss on Disposal, Net of TaxWrite-off of GoodwillInterest RevenueIncome TaxLoss from Flood DamageGain on the Sale of InvestmentsSales RevenueSelling and Administrative ExpensesLoss on Operations, Net of TaxCost of Goods Sold
Income from OperationsOther Revenues and GainsEarnings Per ShareDiscontinued OperationsGross Profit / (Loss)Other Expenses and LossesNet Income / (Loss)Income from Continuing Operations Before Income TaxIncome from Continuing Operations
Income from OperationsGross Profit / (Loss)Other Revenues and GainsExpensesIncome from Continuing Operations Before Income TaxEarnings Per ShareIncome from Continuing OperationsDiscontinued OperationsNet Income / (Loss)
Loss from Flood Damage Sales Revenue Loss on Operations, Net of Tax Selling and Administrative Expenses Loss on Disposal, Net of Tax Cost of Goods Sold Interest Revenue Gain on the Sale of Investments Write-off of Goodwill Income Tax	$
Interest Revenue Sales Revenue Income Tax Write-off of Goodwill Loss on Operations, Net of Tax Loss on Disposal, Net of Tax Loss from Flood Damage Cost of Goods Sold Selling and Administrative Expenses Gain on the Sale of Investments
Income from Continuing OperationsNet Income / (Loss)Earnings Per ShareIncome from OperationsExpensesDiscontinued OperationsGross Profit / (Loss)Other Expenses and LossesIncome from Continuing Operations Before Income Tax
Gain on the Sale of Investments Loss on Operations, Net of Tax Loss from Flood Damage Interest Revenue Sales Revenue Write-off of Goodwill Income Tax Loss on Disposal, Net of Tax Cost of Goods Sold Selling and Administrative Expenses
Interest Revenue Sales Revenue Write-off of Goodwill Loss on Disposal, Net of Tax Income Tax Loss from Flood Damage Gain on the Sale of Investments Selling and Administrative Expenses Loss on Operations, Net of Tax Cost of Goods Sold
Income from Continuing Operations Before Income TaxOther Expenses and LossesIncome from OperationsEarnings Per ShareGross Profit / (Loss)Other Revenues and GainsIncome from Continuing OperationsDiscontinued OperationsNet Income / (Loss)
Selling and Administrative ExpensesIncome TaxCost of Goods SoldLoss on Operations, Net of TaxGain on the Sale of InvestmentsInterest RevenueLoss on Disposal, Net of TaxLoss from Flood DamageWrite-off of GoodwillSales Revenue
Net Income / (Loss)Earnings Per ShareIncome from OperationsDiscontinued OperationsGross Profit / (Loss)Income from Continuing Operations Before Income TaxIncome from Continuing OperationsOther Revenues and GainsOther Expenses and Losses
Other Expenses and LossesOther Revenues and GainsGross Profit / (Loss)Net Income / (Loss)Income from Continuing OperationsIncome from Continuing Operations Before Income TaxEarnings Per ShareIncome from OperationsDiscontinued Operations
Sales Revenue Interest Revenue Gain on the Sale of Investments Loss on Operations, Net of Tax Loss on Disposal, Net of Tax Write-off of Goodwill Loss from Flood Damage Cost of Goods Sold Income Tax Selling and Administrative Expenses
Interest Revenue Cost of Goods Sold Loss on Disposal, Net of Tax Loss from Flood Damage Write-off of Goodwill Selling and Administrative Expenses Sales Revenue Gain on the Sale of Investments Income Tax Loss on Operations, Net of Tax
Discontinued OperationsOther Expenses and LossesIncome from Continuing OperationsIncome from OperationsIncome from Continuing Operations Before Income TaxEarnings Per ShareOther Revenues and GainsNet Income / (Loss)Gross Profit / (Loss)		$
Gross Profit / (Loss)Income from Continuing OperationsIncome from Continuing Operations Before Income TaxOther Revenues and GainsOther Expenses and LossesDiscontinued OperationsNet Income / (Loss)Earnings Per ShareIncome from Operations :
Income from Continuing Operations Before Income TaxOther Expenses and LossesEarnings Per ShareGross Profit / (Loss)Income from OperationsOther Revenues and GainsIncome from Continuing OperationsDiscontinued OperationsNet Income / (Loss)		$
Earnings Per ShareNet Income / (Loss)Gross Profit / (Loss)Income from Continuing Operations Before Income TaxIncome from Continuing OperationsDiscontinued OperationsIncome from OperationsOther Revenues and GainsOther Expenses and Losses
Sales Revenue Selling and Administrative Expenses Loss on Operations, Net of Tax Loss on Disposal, Net of Tax Income Tax Cost of Goods Sold Loss from Flood Damage Gain on the Sale of Investments Interest Revenue Write-off of Goodwill	$
Gain on the Sale of Investments Loss from Flood Damage Interest Revenue Loss on Operations, Net of Tax Loss on Disposal, Net of Tax Write-off of Goodwill Sales Revenue Income Tax Cost of Goods Sold Selling and Administrative Expenses
Income from OperationsEarnings Per ShareIncome from Continuing OperationsIncome from Continuing Operations Before Income TaxNet Income / (Loss)Gross Profit / (Loss)Other Revenues and GainsOther Expenses and LossesDiscontinued Operations		$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

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

SKYSONG COMPANY Retained Earnings Statement December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
DividendsCommon StockDividendsPreferred Stock ExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$
AddLess : DividendsCommon StockDividendsPreferred StockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
AddLess :
DividendsCommon Stock DividendsPreferred Stock Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues	$
DividendsCommon Stock DividendsPreferred Stock Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues
DividendsCommon StockDividendsPreferred StockExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$