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