Presented below are some of the account balances for Sofa So Good Company. DEBITS CREDITS Retained Earnings,
Question:
Presented below are some of the account balances for Sofa So Good Company. | |||
DEBITS | CREDITS | ||
Retained Earnings, January 1, 2020 | 1,000 | ||
Sales Revenue | 10,000 | ||
Cost of goods sold | 4,000 | ||
Interest revenue | 40 | ||
Salary and wage expense | 1,200 | ||
Rent expense | 1,000 | ||
Insurance expense | 300 | ||
Depreciation expense | 200 | ||
Supplies expense | 100 | ||
Write off of Goodwill | 400 | ||
Gain in sale of investments | 500 | ||
Loss due to meteor strike | 300 | ||
Loss on sale of discontinued plastic bag division (pretax) | 700 | ||
Loss on operations of discontinued plastic bag division (pretax) | 400 | ||
Dividends declared on preferred stock | 200 | ||
Dividends declared on common stock | 100 | ||
Income tax rate | 30% | ||
Number of common shares authorized, issued and outstanding | 100 | ||
INSTRUCTIONS: | |||
Prepare a multi-step income statement in proper format for the year ended December 31, 2020. |
Financial and Managerial Accounting
ISBN: 978-1439037805
9th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson