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.