P4-2 (LO 3, 4, 6) Single-Step Statement, Retained Earnings Statement, Periodic Inventory 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 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 89,000 Buildings 98,000 Purchases 610,000 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. 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

P4-2 (LO 3, 4, 6) Single-Step Statement, Retained Earnings Statement, Periodic Inventory 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 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 89,000 Buildings 98,000 Purchases 610,000 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. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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P4-2 (LO 3, 4, 6) Single-Step Statement, Retained Earnings Statement, Periodic Inventory
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
		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	89,000
		Buildings	98,000
		Purchases	610,000
		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.

	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

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