Single Step Income Statement
McGrath Co. on June 30, 2008, reported a retained earnings balance of $1,475,000 before closing the books. The books of the company showed the following account balances on June 30, 2008:
Sales |
$2,870,000 |
Inventory: July 1, 2007 |
150,000 |
June 30, 2008 |
175,000 |
Sales Returns and Allowances |
120,000 |
Purchases |
1,542,000 |
Purchase Discounts |
32,000 |
Dividends Declared |
300,000 |
Selling and General Expenses |
283,000 |
Interest Revenue |
72,000 |
Income Taxes |
270,900 |
Instructions:
Prepare a single step income statement and a retained earnings statement. McGrath Co. has 275,000 shares of common stock outstanding.