Dickinson Company Rogers Company

Price: $3.99 
 

(Multiple-step Income, Retained Earnings) Presented below is information related to Dickinson

Company for 2010.

Presented below is information related to Dickinson Company for 2010.

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

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.