(Multiple-Step Statement, Retained Earnings Statement) The following
information is related to Dickinson Company for 2020.
Retained earnings balance, January 1, 2020 $ 980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to fl ood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued
operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale
operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding
all year.
Instructions
Prepare a multiple-step income statement and a retained earnings statement.