(TCO C) Presented below is information related to Tidal Wave Company.

(TCO B) Adjusting entries: Retained Earnings at 1/1/1X was $0 and at 12/31/1X
February 12, 2020
(TCO B) Adjusting entries: Wizard Industries purchased $12,000 of merchandise
February 12, 2020

(TCO C) Presented below is information related to Tidal Wave Company.
 Retained earnings,

December 31, 20X2  

$ 2,350,000

Sales 

2,600,000

Selling and administrative expenses 

240,000

Earthquake loss (pre-tax) on plant (extraordinary item) 

250,000

Cash dividends declared on common stock    

53,600

Cost of goods sold                     

1,000,000

Gain resulting from computation error on depreciation charge in 2009 (pre-tax)

 520,000

Other revenue    

80,000

Other expenses     

50,000

Instructions: Prepare in good form a multiple-step income statement for the year 20X2. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year. (Points : 40)

 
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