The following information is related to Sheridan Company for 2020.Retained earnings balance, January 1, 2020 $999,600Sales Revenue 25,500,000Cost of goods sold 16,320,000Interest revenue 71,400Selling and administrative expenses 4,794,000Write-off of goodwill 836,400Income taxes for 2020 1,268,880Gain on the sale of investments 112,200Loss due to flood damage 397,800Loss on the disposition of the wholesale division (net of tax) 448,800Loss on operations of the wholesale division (net of tax) 91,800Dividends declared on common stock 255,000Dividends declared on preferred stock 81,600Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.(a1) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)

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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

Chapter18: Accounting For Income Taxes

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The following information is related to Sheridan Company for 2020.

Retained earnings balance, January 1, 2020		$999,600
Sales Revenue		25,500,000
Cost of goods sold		16,320,000
Interest revenue		71,400
Selling and administrative expenses		4,794,000
Write-off of goodwill		836,400
Income taxes for 2020		1,268,880
Gain on the sale of investments		112,200
Loss due to flood damage		397,800
Loss on the disposition of the wholesale division (net of tax)		448,800
Loss on operations of the wholesale division (net of tax)		91,800
Dividends declared on common stock		255,000
Dividends declared on preferred stock		81,600

Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

(a1)

Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)

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