problem: The following data was taken from the records of Roland Carlson Company, for the year 2007.
Income tax applicable to income from continuing operations $187,000;
Income tax applicable to loss on discontinued operations $25,500;
Income tax applicable to extraordinary gain $32,300;
Income tax applicable to extraordinary to extraordinary loss $20,400 and;
Unrealized holding gain on available-for-sale securities $15,000.
|
Extraordinary gain
|
$ 95,000
|
Cash dividends declared
|
$ 150,000
|
|
Loss on discontinued operations
|
75,000
|
Retained earnings January 1,2007
|
600,000
|
|
Administrative expenses
|
240,000
|
Cost of goods sold
|
850,000
|
|
Rent revenue
|
40,000
|
Selling expenses
|
300,000
|
|
Extraordinary loss
|
60,000
|
Sales
|
1,900,000
|
Shares outstanding during 2007 were 100,000.
Instructions;
Make a retained earnings statement for 2007.