The following information was taken from the records of Daughtry Cosmetics, Inc., at December 31, 2010:

Requirements
1. Prepare Daughtry Cosmetics single-step income statement, which lists all revenues together and all expenses together, for the fiscal year ended December 31, 2010. Include earnings-per-share data.
2. Evaluate income for the year ended December 31, 2010. Daughtry€™s top managers hoped to earn income from continuing operations equal to 12% ofsales.

Transcribed Image Text:

$24,000 30,000 .14,000 20,000 Prior-period adjustment- Dividends on common stock... Interest expense Gain on la wsuit settlement Dividend revenue Treasury stock, common debit to Retained Earnings 1,000 Income tax expense (saving) Continuing operations Income from discontinued 33,980 8,680 (12,280) 15,000 (3,000 shares at cost).. 17,000 85,000 610,000 Extraordinary loss Loss on sale of plant assets Income from discontinued General expenses Sales revenue Retained earnings, beginning, 21,000 as originally reported Preferred stock, 4%, $20 par, 3,000 shares issued Selling expenses Common stock, no par, 105,000 60,000 29,400 324,000 25,000 shares authorized and issued Cost of goods sold. 400,000