middle final due one hour
(TCO C) Presented below is information related to Square Company.
Retained earnings, December 31, 20X2
|
$2,750,000
|
Sales
|
2,000,000
|
Selling and administrative expenses
|
240,000
|
Hurricane loss (pre-tax) on plant (extraordinary item)
|
250,000
|
Cash dividends declared on common stock
|
33,600
|
Cost of goods sold
|
960,000
|
Gain resulting from computation error on depreciation charge in 20X1 (pre-tax)
|
2,000,000
|
Other revenue
|
80,000
|
Other expenses
|
50,000
|
Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year