The following information is related to Dickinson Company for the year ended December 31, 2020. Retained earnings balance, January 1, 2020 $980,000 25,000,00 Sales revenue 16,000,00 Cost of goods sold Gain on life insurance proceeds 70,00-| Selling, general, and administrative expenses 4,700,000 Write-off of goodwill 820,000 Gain on the sale of investments 110,000 Loss due to write-down of inventory to NRV 390,000 Loss on the disposition of the wholesale division 530,000 Income tax rate 30% Dividends declared on common stock 250,000 Dividends declared on preferred stock Common shares outstanding 80,000 500,000 Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal considered a discontinued operation. Instructions: Prepare a retained earnings statement.
The following information is related to Dickinson Company for the year ended December 31, 2020. Retained earnings balance, January 1, 2020 $980,000 25,000,00 Sales revenue 16,000,00 Cost of goods sold Gain on life insurance proceeds 70,00-| Selling, general, and administrative expenses 4,700,000 Write-off of goodwill 820,000 Gain on the sale of investments 110,000 Loss due to write-down of inventory to NRV 390,000 Loss on the disposition of the wholesale division 530,000 Income tax rate 30% Dividends declared on common stock 250,000 Dividends declared on preferred stock Common shares outstanding 80,000 500,000 Dickinson Company decided to discontinue and sell its entire wholesale operations. The disposal considered a discontinued operation. Instructions: Prepare a retained earnings statement.
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
Problem 2P
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