Presented below is information related to Ivan Calderon Corp. for the year 2020.

Instructions

a. Prepare a multiple-step income statement for 2020. Assume that 60,000 shares of common stock are outstanding for the entire year.

b. Prepare a separate retained earnings statement for 2020.

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$1,300,000 Write-off of inventory due to obsolescence 780,000 Depreciation expense omitted by accident in 2019 65,000 Casualty loss 48,000 Cash dividends declared 20,000 Retained earnings at December 31, 2019 7,000 Effective tax rate of 20% on all items Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue $ 80,000 55,000 50,000 45,000 980,000