(Multiple and Single Step Income, Retained Earnings) The following account balances were included in the trial balance of Twain Corporation at June 30, 2012.
|
Sales revenue |
$1,578,500 |
Depreciation expense (office furniture and equipment) |
$7,250 |
|
Sales discounts |
31,150 |
Property tax expense |
7,320 |
|
Cost of goods sold |
896,770 |
Bad debt expense (selling) |
4,850 |
|
Salaries and wages expense (sales) |
56,260 |
Maintenance and repairs |
9,130 |
|
Sales commissions |
97,600 |
Office expense |
6,000 |
|
Travel expense (salespersons) |
28,930 |
Sales returns and allowances |
62,300 |
|
Freight out |
21,400 |
Dividends received |
38,000 |
|
Entertainment expense |
14,820 |
Interest expense |
18,000 |
|
Telephone and Internet expense (sales) |
9,030 |
Income tax expense |
102,000 |
|
Depreciation expense (sales equipment) |
4,980 |
Depreciation understatement |
17,700 |
|
Maintenance and repairs expense (sales) |
6,200 |
Dividends declared on |
9,000 |
|
Miscellaneous selling expenses |
4,715 |
Dividends declared on common |
37,000 |
|
Office supplies used |
3,450 |
||
|
Telephone and Internet expense |
2,820 |
The Retained Earnings account had a balance of $337,000 at July 1, 2011. There are 80,000 shares of common stock outstanding.
Instructions
(a) Using the multiple step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2012.
(b) Using the single step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2012.