The following account balances were included in the trial balance of Twain Corporation at June 30, 2020. Sales revenue $1,578,500 Depreciation expense (office Sales discounts 31,150 furniture and equipment) $ 7,250 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs Travel expense (salespersons) 28,930 expense (administration) 9,130 Delivery expense 21,400 Office expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement Office supplies used 3,450 due to error—2017 (net of tax) 17,700 Telephone and Internet expense (administration) 2,820 Dividends declared on preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2019. 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, 2020. b. Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
The following account balances were included in the trial balance of Twain Corporation at June 30, 2020. Sales revenue $1,578,500 Depreciation expense (office Sales discounts 31,150 furniture and equipment) $ 7,250 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs Travel expense (salespersons) 28,930 expense (administration) 9,130 Delivery expense 21,400 Office expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement Office supplies used 3,450 due to error—2017 (net of tax) 17,700 Telephone and Internet expense (administration) 2,820 Dividends declared on preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2019. 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, 2020. b. Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
Problem 1MP
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Question
The following account balances were included in the
Sales revenue | $1,578,500 | |||||
Sales discounts | 31,150 | furniture and equipment) | $ 7,250 | |||
Cost of goods sold | 896,770 | Property tax expense | 7,320 | |||
Salaries and wages expense (sales) | 56,260 | 4,850 | ||||
Sales commissions | 97,600 | Maintenance and repairs | ||||
Travel expense (salespersons) | 28,930 | expense (administration) | 9,130 | |||
Delivery expense | 21,400 | Office expense | 6,000 | |||
Entertainment expense | 14,820 | Sales returns and allowances | 62,300 | |||
Telephone and Internet expense (sales) | 9,030 | Dividends received | 38,000 | |||
Depreciation expense (sales equipment) | 4,980 | Interest expense | 18,000 | |||
Maintenance and repairs expense (sales) | 6,200 | Income tax expense | 102,000 | |||
Miscellaneous selling expenses | 4,715 | Depreciation understatement | ||||
Office supplies used | 3,450 | due to error—2017 (net of tax) | 17,700 | |||
Telephone and Internet expense (administration) | 2,820 | Dividends declared on |
9,000 | |||
Dividends declared on common stock | 37,000 |
The
Instructions
a. Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
b. Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
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