1. DEVRY ACCT 550 W EEK 2 H OMEWORK A SSIGNMENT Check this A+ tutorial guideline at http://www.assignmentcloud.com/acct- 550/acct-550-week-2-homework-assignment For more classes visit http://www.assignmentcloud.com ACCT 550 Week 2 Homework Assignment E4-4 (Multiple-Step and Single-Step) Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2012 information related to Webster Company ($000 omitted). Administrative expense Officers’ salaries $ 4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 63,570

2. Rent revenue 17,230 Selling expense Transportation-out 2,690 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax expense 7,580 Interest expense 1,860 Instructions (a) Prepare an income statement for the year 2012 using the multiple-step form. Common shares outstanding for 2012 total 40,550 (000 omitted). (b) Prepare an income statement for the year 2012 using the single-step form. (c) Which one do you prefer? Discuss. E4-12 (Earnings per Share) At December 31, 2011, Schroeder Corporation had the following stock outstanding.

3. 8% cumulative preferred stock, $100 par, 107,500 shares $10,750,000 Common stock, $5 par, 4,000,000 shares 20,000,000 During 2012, Schroeder did not issue any additional common stock. The following also occurred during 2012. Income from continuing operations before taxes $21,650,000 Discontinued operations (loss before taxes) 3,225,000 Preferred dividends declared 860,000 Common dividends declared 2,200,000 Effective tax rate 35% Instructions Compute earnings per share data as it should appear in the 2012 income statement of Schroeder Corporation. (Round to two decimal places.) P4-1 (Multiple-Step Income, Retained Earnings) Presented below is information related to Dickinson Company for 2012.

4. Retained earnings balance, January 1, 2012 $ 980,000 Sales revenue 25,000,000 Cost of goods sold 16,000,000 Interest revenue 70,000 Selling and administrative expenses 4,700,000 Write-off of goodwill 820,000 Income taxes for 2012 1,244,000 Gain on the sale of investments (normal recurring) 110,000

5. Loss due to flood damage—extraordinary item (net of tax) 390,000 Loss on the disposition of the wholesale division (net of tax) 440,000 Loss on operations of the wholesale division (net of tax) 90,000 Dividends declared on common stock 250,000 Dividends declared on preferred stock 80,000 Instructions Prepare a multiple-step income statement and a retained earnings statement. Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2012, there were 500,000 shares of common stock outstanding all year.