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    Multiple-step statement with retained earning -Brokaw Corporation

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    Please help. Please put in excel and give explanations so I can better understand.

    Presented below is information related to Brokaw Corp. for the year 2010.

    Net sales $1,200,000
    Cost of goods sold 780,000
    Selling expenses 65,000
    Administrative expenses 48,000
    Dividend revenue 20,000
    Interest revenue 7,000
    Write-off of inventory due to obsolescence 80,000
    Depreciation expense omitted by accident in 2009 40,000
    Casualty loss (extraordinary item) before taxes 50,000
    Cash dividends declared 45,000
    Retained earnings at December 31, 2009 980,000

    Effective tax rate of 34% on all items


    a.) Prepare a multiple-step income statement for 2010. Assume that 60,000 shares of common stock are outstanding.
    b.) Prepare a retained earnings statement for 2010.

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    Solution Summary

    The expert examines the multiple step statement with retained earnings for Brokaw Corporation.