QUESTION 27

1. (Multiple-step Statement with Retained Earnings)Presented below is information related to Trieu Corp. for the year 2014.
3. Net sales$1,200,000Write-off of inventory due to obsolescence$ 80,000
4. Cost of goods sold780,000Depreciation exp. omitted by accident in 200940,000
5. Selling expenses65,000Casualty loss (extraordinary item) before taxes50,000
6. Admin. expenses48,000Dividends declared45,000
7. Dividend revenue20,000Retained earnings at December 31, 2009980,000
8. Interest revenue7,000Effective tax rate of 34% on all items
10. Instructions
11. (a)Prepare multiple-step income statement for 2014. Assume that 60,000 shares of common stock are outstanding