Benford Company uses a periodic inventory system and presents the following items derived from its December 31, 2016, adjusted trial balance:
Retained Earnings, January 1, 2016
Common Stock, $15 par
Merchandise Inventory, January 1, 2016
The following information is also available for 2016 and is not reflected in the preceding accounts:
- The common stock has been outstanding for the entire year. A cash dividend of $0.92 per share was declared.
- The income tax rate on all items of income is 30%.
- The ending merchandise inventory is $30,030.
- A pretax $4,400 loss was recognized on the sale of Division E (a component of the company). This division had earned a pretax operating income of $2,090 during 2016.
- Damaged inventory was written off at a pretax loss of $7,260.
- An earthquake, which is unusual in the area, caused a $4,070 pretax loss.
- Prepare a 2016 single-step income statement for Benford Company.
- Prepare a 2016 retained earnings statement for Benford Company.