Hi
I would like someone to check to see if I did this correctly, if I did not then please help.
Thanks
The Problem is:
The following pretax amounts pertain to River Corp. for the year ended December 31, 2008.
Sales............................................. ........................................$400,000
Operating Expenses.......................................... .......................84,000
Extraordinary gain.............................................. ......................30,000
Interest Expense........................................... ............................4,000
Cost of goods sold.............................................. ...................280,000
Gain on sale of equipment......................................... ..............10,000
Prior period adjustment........................................ ..................(16,000)
Gain on disposal of business component.................................40,000
Retained earnings, January 1, 2008...................................1,600,000
Dividends declared.......................................... ........................12,000

The effective corporate tax rate is 30 percent. The company had 10,000 shares of common stock outstanding for the entire year.

1.) Prepare a multiple-step income statement in good form for the year ended December 31, 2008.
2.) Prepare a retained earnings statement in good form for the year ended December 31, 2008

1.) River Corp.
Multiple-step Income Statement
For the Year ended December 31, 2008
Revenue:
Sales............................................. .......................................400,000
Cost of goods sold.............................................. .................280,000
Gross Profit............................................ ..............................120,000

Operating Expenses.......................................... ....................84,000
Operating Income............................................ ......................36,000

Other Revenues and gains:
Gain on Sale of Equipment......................................... .............10,000
Other Expenses and losses:
Interest Expense........................................... ...........................4,000
Income from continuing operations before income tax............42,000
Income from continuing operations after tax..........................12,600
Income from continuing operation......................................... ..29,400
Discontinued Operations:
Gain of disposal of business components................................40,000
Extraordinary gain.............................................. .....................30,000
Net Income............................................ ..................................99,400
Earnings per common share:
Income from continuing operations........................................ .....2.94
Discontinued operations........................................ ......................4.00
Extraordinary gain.............................................. ..........................3.00
Net Income............................................ .......................................9.94

2.) Retained earning unadjusted beginning balance .........1,600,000
Deduct prior period adjustments....................................... ......16,000
Retained earnings, Adjusted beginning balance.................1,584,000
Net Income............................................ ..................................99,400
.................................................. ..........................................1,683,40 0
deduct dividends......................................... .............................12,000
Retained Earnings December 31, 2008...............................1,671,400