The following pretax amounts pertain to Spartan Corp. for the year ended december 31, 2014
sales - 400,000
operating expense - 84,000
extraordinary gain - 30,000
interest expense - 4,000
cost of goods sold - 280,000
gain on sale of equipment - 10,000
prior period adjustment - (16,000)
gain on disposal - of business component - 30,000
retained earning, january 1, 2014 - 1,600,000
dividends declared - 12,000
The effective corporate tax rate is 30 percent. the company had 10,000 shares of common stock outstanding for the entire year
1. Prepare a multiple step income statement for year ended december 31, 2014
2. prepare a retained earning statement for year ended december 31, 2014 the following pretax amounts pertain to Spartan Corp. for the year ended december 31, 2014
sales - 400,000
operating expense - 84,000
extraordinary gain - 30,000
interest expense - 4,000
cost of goods sold - 280,000
gain on sale of equipment - 10,000
prior period adjustment - (16,000)
gain on disposal - of business component - 30,000
retained earning, january 1, 2014 - 1,600,000
dividends declared - 12,000
The effective corporate tax rate is 30 percent. the company had 10,000 shares of common stock outstanding for the entire year
1. Prepare a multiple step income statement for year ended december 31, 2014
2. prepare a retained earning statement for year ended december 31, 2014