Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales   $1,300,000   Write-off of inventory due to obsolescence   $ 80,000 Cost of goods sold   780,000   Depreciation expense omitted by accident in 2019   55,000 Selling expenses   65,000   Casualty loss   50,000 Administrative expenses   48,000   Cash dividends declared   45,000 Dividend revenue   20,000   Retained earnings at December 31, 2019   980,000 Interest revenue   7,000   Effective tax rate of 20% on all items     Instructions a.    Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year. b.    Prepare a separate retained earnings statement for 2020.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
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Presented below is information related to Ivan Calderon Corp. for the year 2020.

Net sales   $1,300,000   Write-off of inventory due to obsolescence   $ 80,000
Cost of goods sold   780,000   Depreciation expense omitted by accident in 2019   55,000
Selling expenses   65,000   Casualty loss   50,000
Administrative expenses   48,000   Cash dividends declared   45,000
Dividend revenue   20,000   Retained earnings at December 31, 2019   980,000
Interest revenue   7,000   Effective tax rate of 20% on all items    

Instructions

a.    Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year.

b.    Prepare a separate retained earnings statement for 2020.

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