Question

Ramsey Corporation's capital structure consists of 50,000 shares of common stock with a par value of $4. At December 31, 2020, an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,250,000 Discontinued operations loss (Note: you must adjust for tax) 90,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 700,000 Accumulated depreciation-machinery 180,000 Dividend revenue 18,000 Unearned service revenue 4,400 Interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2020 270,000 Accumulated Other Comprehensive Income, Jan. 1, 2020 20,000 Unrealized holding loss from AFS debt securities, net of tax 5,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared common shareholders 14,000 Dividends declared preferred shareholders (and paid) 10,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/26) 200,000 Machinery 450,000 Supplies 40,000 Accounts payable 60,000 Tax Rate is 30%

(a) Prepare a multiple-step income statement in good form (b) Prepare a statement of comprehensive income (separate from income statement) in good form. Note round EPS figures to the nearest penny. (c) Prepare a statement of stockholders’ equity in good form

Answer 1