Acc421 Intermediate Accounting: E4-9 Presented below is information related to Ivan Calderon Corp

Acc421 Intermediate Accounting
E4-9 Multiple-Step Statement with Retained Earnings
Presented below is information related to Ivan Calderon Corp. for the year 2014.
Net sales 1,300,000
Write-off of inventory due to obsolescence 80,000
Cost of goods sold 780,000
Depreciation expense omitted by accident in 2013 55,000
Selling expenses 65,000
Administrative expenses 48,000
Cash dividends declared 45,000
Dividend revenue 20,000
Interest revenue 7,000
Casualty loss (extraordinary item) before taxes 50,000
Retained earnings at December 31, 2013 980,000
Effective tax rate of 34% on all items

Instructions
(a) Prepare a multiple-step income statement for 2014. Assume that 60,000 shares of common stock are outstanding.
(b) Prepare a separate retained earnings statement for 2014.
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