Intermediate Accounting: P4-1 Presented below is information related to Dickinson Company for 2010

Intermediate Accounting
P4-1
Presented below is information related to Dickinson Company for 2010.
Retained earnings balance, January 1, 2010 995,700
Sales for the year 26,425,000
Cost of goods sold 16,195,000
Interest revenue 77,600
Selling and administrative expenses 4,734,200
Write-off of goodwill (not tax deductible) 837,600
Income taxes for 2010 966,140
Gain on the sale of investments (normal recurring) 112,500
Loss due to flood damage-extraordinary item (net of tax) 397,500
Loss on the disposition of the wholesale division (net of tax) 445,900
Loss on operations of the wholesale division (net of tax) 93,000
Dividends declared on common stock 253,200
Dividends declared on preferred stock 81,200

Required:
Prepare a multiple-step income statement and a retained earnings statement. Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2010, there were 500,000 shares of common stock outstanding all year.
Powered by