The following information was taken from the records of Roland Carlson Inc. for the year 2014. Income tax applicable to income from continuing operati
The following information was taken from the records of Roland Carlson Inc. for the year 2014. Income tax applicable to income from continuing operations $187,000; income tax applicable to loss on discontinued operations $25,500; income tax applicable to extraordinary gain $32,300; income tax applicable to extraordinary loss $20,400; and unrealized holding gain on availablefor- sale securities $15,000.
\r\nExtraordinary gain $ 95,000 Cash dividends declared $ 150,000
\r\nLoss on discontinued operations 75,000 Retained earnings January 1, 2014 600,000
\r\nAdministrative expenses 240,000 Cost of goods sold 850,000
\r\nRent revenue 40,000 Selling expenses 300,000
\r\nExtraordinary loss 60,000 Sales revenue 1,900,000
\r\nShares outstanding during 2014 were 100,000.
\r\nInstructions
\r\n(a) Prepare a single-step income statement.
\r\n(b) Prepare a comprehensive income statement for 2014, using the two statement format.
\r\n(c) Prepare a retained earnings statement for 2014.