E4-9B (Multiple-step Statement with Retained Earnings) Presented below is information related to Trieu Corp. for the year 2014.
Net sales $2,600,000 Write-off of inventory due to obsolescence $ 160,000
Cost of goods sold 1,560,000 Depreciation expense omitted by accident in 2013 110,000
Selling expenses 130,000 Casualty loss (extraordinary item) before taxes 100,000
Administrative expenses 96,000 Dividends declared 90,000
Dividend revenue 40,000 Retained earnings at December 31, 2013 1,960,000
Interest revenue 14,000 Effective tax rate of 34% on all items
(a) Prepare a multiple-step income statement for 2014. Assume that 60,000 shares of common stock are outstanding.
(b) Prepare a separate retained earnings statement for 2014.