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Drew Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2019 an...

Drew Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2019 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue 1,100,000 Cost of Goods Sold 701,000 Income from operations of discontinued product line 35,000 Loss on disposal of discontinued production line 70,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Unrealized gain on available for sale securities 12,000 Common stock 200,000 Accumulated depreciation-machinery 180,000 Dividend revenue 8,000 Inventory, December 31, 2019 125,000 Unearned service revenue 4,400 Interest payable 1,000 Land 370,000 Retained earnings, January 1, 2019 290,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared 24,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/20) 200,000 Machinery 450,000 Supplies 40,000 Accounts payable 60,000 Pension loss from minimum pension adjustment 20,000 Overstatement of Depreciation Expense in 2018 32,000 Assume an income tax rate of 25%. Prepare a multiple-step income statement for the year ended December 31st, 2019

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Income Statement:

ekkarill92 answered 2 years ago
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