Exercise NO: 9

Presented below is information related to Ivan Calderon Corp. for the year 2014.\nNet sales $1,300,000 Write-off of inventory due to obsolescence $ 80,

Presented below is information related to Ivan Calderon Corp. for the year 2014.

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Net sales $1,300,000 Write-off of inventory due to obsolescence $ 80,000

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Cost of goods sold 780,000 Depreciation expense omitted by accident in 2013 55,000

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Selling expenses 65,000 Casualty loss (extraordinary item) before taxes 50,000

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Administrative expenses 48,000 Cash dividends declared 45,000

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Dividend revenue 20,000 Retained earnings at December 31, 2013 980,000

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Interest revenue 7,000 Effective tax rate of 34% on all items

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Instructions

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(a) Prepare a multiple-step income statement for 2014. Assume that 60,000 shares of common stock are outstanding.

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(b) Prepare a separate retained earnings statement for 2014.

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Snider Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first

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