Dickinson company decided to discontinue its entire


The following information is related to Dickinson Company for 2014.

Retained earnings balance, January 1, 2014

 

$992,300

Sales Revenue

 

26,264,000

Cost of goods sold

 

16,201,000

Interest revenue

 

75,100

Selling and administrative expenses

 

4,740,000

Write-off of goodwill

 

839,000

Income taxes for 2014

 

1,427,000

Gain on the sale of investments (normal recurring)

 

120,500

Loss due to flood damage-extraordinary item (net of tax)

 

395,000

Loss on the disposition of the wholesale division (net of tax)

 

442,300

Loss on operations of the wholesale division (net of tax)

 

96,100

Dividends declared on common stock

 

253,900

Dividends declared on preferred stock

 

89,000

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 2014, there were 493,400 shares of common stock outstanding all year.

Prepare a multiple-step income statement.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Dickinson company decided to discontinue its entire
Reference No:- TGS01212491

Expected delivery within 24 Hours