The following is the trial balance of Thompson Corporation at December 31, 2020. THOMPSON CORPORATION Trial Balance December 31, 2020 Debit Credit Purchase Discounts 10,000 Cash 189,700 105,000 Accounts Receivable Rent Revenue 18,000 160,000 18,000 1,100,000 Retained Earnings Salaries and Wages Payable Sales Revenue 110,000 Notes Receivable Accounts Payable Accumulated Depreciation-Equipment 49,000 28,000 14,500 17,500 Sales Discounts Sales Returns and Allowances Notes Payable Selling Expenses Administrative Expenses Common Stock 70,000 232,000 99,000 300,000 Income Tax Expense 53,900 45,000 Cash Dividends Allowance for Doubtful Accounts 5,000 Supplies Freight-In 14,000 20,000 70,000 140,000 Land Equipment Bonds Payable 100,000 30,000 19,600 Gain on Sale of Land Accumulated Depreciation - Buildings Inventory Buildings 89,000 98,000 610,000 1,907,600 $ 1,907,600 Purchases Totals A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2020 is $645,000. Instructions Prepare a single-step income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand shares of common stock were outstanding the entire year. THOMPSON CORPORATION Income Statement For the Year Ended December 31, 2020 Revenues Expenses THOMPSON CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020
The following is the trial balance of Thompson Corporation at December 31, 2020. THOMPSON CORPORATION Trial Balance December 31, 2020 Debit Credit Purchase Discounts 10,000 Cash 189,700 105,000 Accounts Receivable Rent Revenue 18,000 160,000 18,000 1,100,000 Retained Earnings Salaries and Wages Payable Sales Revenue 110,000 Notes Receivable Accounts Payable Accumulated Depreciation-Equipment 49,000 28,000 14,500 17,500 Sales Discounts Sales Returns and Allowances Notes Payable Selling Expenses Administrative Expenses Common Stock 70,000 232,000 99,000 300,000 Income Tax Expense 53,900 45,000 Cash Dividends Allowance for Doubtful Accounts 5,000 Supplies Freight-In 14,000 20,000 70,000 140,000 Land Equipment Bonds Payable 100,000 30,000 19,600 Gain on Sale of Land Accumulated Depreciation - Buildings Inventory Buildings 89,000 98,000 610,000 1,907,600 $ 1,907,600 Purchases Totals A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2020 is $645,000. Instructions Prepare a single-step income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. Thirty thousand shares of common stock were outstanding the entire year. THOMPSON CORPORATION Income Statement For the Year Ended December 31, 2020 Revenues Expenses THOMPSON CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.3C
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