The following is the trial balance of Thompson Corporation at December 31, 2020. Thompson CorporationTrial BalanceDecember 31, 2020 Debit Credit Purchase Discounts $ 10,000 Cash $ 189,700 Accounts Receivable 105,000 Rent Revenue 18,000 Retained Earnings 160,000 Salaries and Wages Payable 18,000 Sales Revenue 1,100,000 Notes Receivable 110,000 Accounts Payable 49,000 Accumulated Depreciation—Equipment 28,000 Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable 70,000 Selling Expenses 232,000 Administrative Expenses 99,000 Common Stock 300,000 Income Tax Expense 53,900 Cash Dividends 45,000 Allowance for Doubtful Accounts 5,000 Supplies 14,000 Freight-In 20,000 Land 70,000 Equipment 140,000 Bonds Payable 100,000 Gain on Sale of Land 30,000 Accumulated Depreciation—Buildings 19,600 Inventory (January 1, 2020) 89,000 Buildings 98,000 Purchases 610,000 00000000 Totals $1,907,600 $1,907,600 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.
The following is the trial balance of Thompson Corporation at December 31, 2020. Thompson CorporationTrial BalanceDecember 31, 2020 Debit Credit Purchase Discounts $ 10,000 Cash $ 189,700 Accounts Receivable 105,000 Rent Revenue 18,000 Retained Earnings 160,000 Salaries and Wages Payable 18,000 Sales Revenue 1,100,000 Notes Receivable 110,000 Accounts Payable 49,000 Accumulated Depreciation—Equipment 28,000 Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable 70,000 Selling Expenses 232,000 Administrative Expenses 99,000 Common Stock 300,000 Income Tax Expense 53,900 Cash Dividends 45,000 Allowance for Doubtful Accounts 5,000 Supplies 14,000 Freight-In 20,000 Land 70,000 Equipment 140,000 Bonds Payable 100,000 Gain on Sale of Land 30,000 Accumulated Depreciation—Buildings 19,600 Inventory (January 1, 2020) 89,000 Buildings 98,000 Purchases 610,000 00000000 Totals $1,907,600 $1,907,600 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.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...
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The following is the
Thompson Corporation Trial Balance December 31, 2020 |
||||
Debit | Credit | |||
Purchase Discounts | $ 10,000 | |||
Cash | $ 189,700 | |||
105,000 | ||||
Rent Revenue | 18,000 | |||
160,000 | ||||
Salaries and Wages Payable | 18,000 | |||
Sales Revenue | 1,100,000 | |||
Notes Receivable | 110,000 | |||
Accounts Payable | 49,000 | |||
Accumulated |
28,000 | |||
Sales Discounts | 14,500 | |||
Sales Returns and Allowances | 17,500 | |||
Notes Payable | 70,000 | |||
Selling Expenses | 232,000 | |||
Administrative Expenses | 99,000 | |||
Common Stock | 300,000 | |||
Income Tax Expense | 53,900 | |||
Cash Dividends | 45,000 | |||
Allowance for Doubtful Accounts | 5,000 | |||
Supplies | 14,000 | |||
Freight-In | 20,000 | |||
Land | 70,000 | |||
Equipment | 140,000 | |||
Bonds Payable | 100,000 | |||
Gain on Sale of Land | 30,000 | |||
Accumulated Depreciation—Buildings | 19,600 | |||
Inventory (January 1, 2020) | 89,000 | |||
Buildings | 98,000 | |||
Purchases | 610,000 | 00000000 | ||
Totals | $1,907,600 | $1,907,600 |
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.
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