The following information was taken from the records of Roland Carlson Inc. for the year 2020: income tax applicable to income f
rom continuing opera-tions $187,000, income tax applicable to loss on discontinued operations $25,500, and unrealized holding gain on available-for-sale debt securities (net of tax) $15,000.
Gain on sale of equipment $95,000
Cash dividends declared $150,000
Loss on discontinued operations 75,000
Retained earnings January 1, 2020 600,000
Administrative expenses 240,000
Cost of goods sold 850,000
Rent revenue 40,000
Selling expenses 300,000
Loss on write-down of inventory 60,000
Sales revenue 1,900,000
Shares outstanding during 2020 were 100,000
Required:
a. Prepare single -step income statement.
b. Prepare comprehensive income statement for 2020, using two statement format.
c. Prepare a retained earnings statement for 2020.
