The following information was taken from the ledger of Calenergy Corporation at December 31, 2014.
|
Common stock, no par, |
|
Discontinued operations, |
|
|
45,000 shares issued |
$180,000 |
income |
$20,000 |
|
Sales revenue |
620,000 |
Prior period adjustment— |
|
|
Extraordinary gain |
26,000 |
credit to Retained earnings |
5,000 |
|
Loss due to lawsuit |
11,000 |
Gain on sale of plant assets |
21,000 |
|
General expenses |
62,000 |
Income tax expense (saving): |
|
|
Preferred stock 8% |
50,000 |
Continuing operations |
32,000 |
|
Selling expenses |
108,000 |
Discontinued operations |
8,000 |
|
Retained earnings, beginning, |
|
Extraordinary gain |
10,000 |
|
as originally reported |
103,000 |
Treasury stock, common |
|
|
Dividends |
14,000 |
(5,000 shares) |
25,000 |
|
Cost of goods sold |
380,000 |
|
|
Requirement
1. Prepare a multi step income statement and a statement of retained earnings for Calenergy Corporation for the year ended December 31, 2014. Include the EPS presentation and show your computations. Calenergy had no changes in its stock accounts during the year.