Accounting

P4-1 (A couple of-Step Source of revenue, Retained Income) The next knowledge is expounded to Dickinson

Corporate for 2014.

Retained profits stability, January 1, 2014 $ 980,000

Gross sales earnings 25,000,000

Price of products offered 16,000,000

Pastime earnings 70,000

Promoting and administrative bills four,700,000

Write-off of goodwill 820,000

Source of revenue taxes for 2014 1,244,000

Achieve at the sale of investments (commonplace habitual) 110,000

Loss because of fl ood injury—unusual merchandise (web of tax) 390,000

Loss at the disposition of the wholesale department (web of tax) 440,000

Loss on operations of the wholesale department (web of tax) 90,000

 

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PROBLEMS

Copyright ©2013 John Wiley & Sons, Inc.

 

Issues 197

Dividends declared on commonplace inventory $250,000

Dividends declared on most popular inventory 80,000

Dickinson Corporate made up our minds to discontinue its whole wholesale operations and to retain its production

operations. On September 15, Dickinson offered the wholesale operations to Rogers Corporate. All over 2014,

there have been 500,000 stocks of commonplace inventory remarkable all yr.

 

Directions

Get ready a multiple-step source of revenue commentary and a retained profits commentary. 

My query is how do you Income In line with Proportion