Acc423-Presented below is information related to Dickinson Company for 2010. 1 answer below »
Presented below is information related to Dickinson Company for 2010.
Retained earnings balance, January 1, 2010
995,700
Sales for the year
26,425,000
Cost of goods sold
16,195,000
Interest revenue
77,600
Selling and administrative expenses
4,734,200
Write-off of goodwill (not tax deductible)
837,600
Income taxes for 2010
966,140
Gain on the sale of investments (normal
112,500
Loss due to flood damage-extraordinary
397,500
Loss on the disposition of the wholesale
445,900
Loss on operations of the wholesale
93,000
Dividends declared on common stock
253,200
Dividends declared on preferred stock
81,200
Required:
Prepare a multiple-step income statement and a retained earnings statement. Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2010, there were 500,000 shares of common stock outstanding all year.