Question

Exercise 4-9 (Part Level Submission) Presented below is information related to Splish Corp. for the year 2017 Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $1,395,800 783,600 Write-off of inventory due to obsolescence $84,130 Depreciation expense omitted by accident in 201648,800 52,200 44,690 1,030,540 74,500 Casualty loss 49, 900 Cash dividends declared 21,800 etaied earnings at December 31, 2016 8,510 Effective tax rate of 34% on all items Your answer is correct. Prepare a multiple-step income statement for 2017. Assume that 64,570 shares of common stock are outstanding. (Round earnings per share to 2 decimal places, e.g. 1.49.,) SPLISH CORP Income Statement For the Year Ended December 31, 2017 Revenue Net Sales 1395800 Cost of Goods Sold 783600

Answer 1

Solution b:

SPLISH CORP.
Retained Earnings Statement
For the year ended December 31, 2017
Retained Earnings, January 1, as reported	$10,30,540
Correction for Overstatement of Net Income in prior period (Net of Tax) [$48,800*(100-34%)]	$32,208
Retained Earnings, January 1, as adjusted	$9,98,332
Add: Net Income (Loss)	$2,51,975
	$12,50,307
Less: Dividend declared	$44,690
Retained Earnings, December 31	$12,05,617