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Question 1 Using the following information for Company A . a ) Create an income statement. Company A . b ) Create a statement of
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Using the following information for Company A
a Create an income statement. Company A
b Create a statement of retained earnings. Income Statement
Operating expenses $ Sales revenue
Dividends $ less Sales discount
Sales revenue $ Net sales
Operating income from discontinued operations $ less Cost of goods sold
Loss on sale of assets $ Gross profit
Correction to prior year debit $ Less Operating expenses
Opening retained earnings $ Income from operations
Sales discount $ Other Income expenses
Loss due to lawsuit $ Loss due to lawsuit
Income tax expense on discontinuing operations $ Loss on sale of assets
Income tax expense on continuing operations $ Income before taxes and discontinued operations
Cost of goods sold $ Income tax expense on continuing operations
Income before discontinued operations
Discontinued operations
Operating income from discontinued operations
less Income tax expense on discontinuing operations
NET INCOME
Statement of Retained Earning
Company A
Opening retained earnings
Correction to prior year debit
Net income
Dividends
Closing retained earnings
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