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Presented below is information related to Ivan Calderon Corp. for the year 2008.
$1,300,000 780,000 65,000 $ 80,000 55,000 Net sales Cost of goods sold Selling expenses Write-off of inventory due to obsolescence Depreciation expense omitted by accident in 2007 Casualty loss (extraordinary item) before taxes 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 31, 2007
Instructions
(a) Prepare a multiple-step income statement for 2008. Assume that 60,000 shares of common stock are outstanding.
(b) Prepare a separate retained earnings statement for 2008.
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