Question

my question is Q - P4.1 multiple step statement , retained earning statement.

thank you , please explain with dtaip why you do what , :)

C 1 C $ 150,00 600,00 850.00 300.00 1 1 F E T E 1 Co. has January 1, 2020, balances in como SLOCK 350,000.ccumulated other com (Single-Step Statement, Retained Earnings Statement, Periodi hensive income $80,000; and retained earnings $90,000. It issued no stock during 2020. Instructions Prepare a statement of stockholders' equity. (Ignore income taxes.) E4.17 (LO 2, 3, 5) (Various Reporting Formats) The following information was taken from 1, records of Roland Carlson Inc. for the year 2020: income tax applicable to income from continuing open tions $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale debt securities (net of tax) $15,000 Gain on sale of equipment $ 95,000 Cash dividends declared Loss on discontinued operations 75,000 Retained earnings January 1, 2020 Administrative expenses 240,000 Cost of goods sold Rent revenue 40,000 Selling expenses Loss on write-down of inventory 60,000 Sales revenue 1,900,00 Shares outstanding during 2020 were 100,000. Instructions a. Prepare a single-step income statement (with respect to items in Income from operations). b. Prepare a comprehensive income statement for 2020, using the two statement format. c. Prepare a retained earnings statement for 2020. P4.1 (LO 2, 3, 5) (Multiple-Step Statement, Retained Earnings Statement) The following information is related to Dickinson Company for 2020. Retained earnings balance, January 1, 2020 $ 980,000 Sales revenue 25,000,000 Cost of goods sold 16,000,000 Interest revenue 70,000 Selling and administrative expenses 4,700,000 Write-off of goodwill 820,000 Income taxes for 2020 1,244,000 Gain on the sale of investments 110,000 Loss due to flood damage 390,000 Loss on the disposition of the wholesale division (net of tax) 440,000 90,000 Loss on operations of the wholesale division (net of tax) Dividends declared on common stock 250,000 Dividends declared on preferred stock 80,000 Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstandic Instructions Prepare a multiple-step income statement and a retained earnings statement. P4.2 (LO 2, 3, 5) Excel Inventory) The following is the trial balance of Thompson Corporation at December 31, 2020 A physical ac sold for 2020 Instruction Prepare a sir in retained of common P4.3 (LO 2, income from ring in 2020 1. The col 2. At the $9.000 2018, 2 3. Sale of 4. When tender the gali 5. The co all year. 6. "The OK

Answer 1

1. Multistep Income Statement -

$ 25,000,000 $ 16,000,000 $ 9,000,000 $ 4,700,000 $ 820,000 $ 5,520,000 $ 3,480,000 Dickinson Company Multi Step Income Statement For 2020 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling and Administrative Expense Write off Goodwill Total Operating Expenses Income From Operation Other Revenues & (Expenses) Interest Revenue Gain on Sale of Investment Income before Income Tax (-) Income Taxes for 2020 Income from Continuing Operation Discontinued Operation: Loss on operations of wholesale division (net of tax) Loss on the disposition of the wholesale division (net of tax) Income before Extraordinary Items Extraordinary Items: (-) Loss Due to Flood Damages $ 70,000 $ (110,000) $ (40,000) $ 3,440,000 $ (1,244,000) $ 2,196,000 $ (90,000) $ (440,000) $ (530,000) $ 1,666,000 $ (390,000) Net Income $ 1,276,000

2. Statement of Retained Earnings -

Dickinson Company Statement of Retained Earnings For 2020 Retained Earnings balance, January 1, 2020 $ 980,000 Add: Net Income for the Year 2020 $1,276,000 Less: Dividend declared on Common Stock $ (250,000) Dividend declared on Preferred Stock $ (80,000) $ 946,000 Retained Earnings balance, December 31, 2020 $ 1,926,000