Question: The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Property tax expense 7,320 Cost of goods sold 896,770 Bad debt expense (selling) 4,850 Salaries and wages expense (sales) 56,260 Maintenance and repairs expense (administration) 9,130 Sales commissions 97,600 Office expense 6,000 Travel expense (salespersons) 28,930 Sales returns and allowances 62,300 Delivery expense 21,400 Dividends received 38,000 Entertainment expense 14,820 Interest expense 18,000 Telephone and Internet expense (sales) 9,030 Income tax expense 102,000 Depreciation expense (sales equipment) 4,980 Depreciation understatement due to error-2014 (net of tax) | 17,700 Maintenance and repairs expense (sales) 6,200 Dividends declared on preferred stock Miscellaneous selling expenses 4,715 Dividends declared on common stock 9,000 37,000 Office supplies used 3,450 Telephone and Internet expense (administration) 2,820 The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding. a. Using the multiple-step form, prepare an income statement for the year ended June 30, 2017. b. Prepare a retained earnings statement for the year ended June 30, 2017. c. Using the single-step form, prepare an income statement for the year ended June 30, 2017. d. Prepare a retained earnings statement for the year ended June 30, 2017.
Question: The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Property tax expense 7,320 Cost of goods sold 896,770 Bad debt expense (selling) 4,850 Salaries and wages expense (sales) 56,260 Maintenance and repairs expense (administration) 9,130 Sales commissions 97,600 Office expense 6,000 Travel expense (salespersons) 28,930 Sales returns and allowances 62,300 Delivery expense 21,400 Dividends received 38,000 Entertainment expense 14,820 Interest expense 18,000 Telephone and Internet expense (sales) 9,030 Income tax expense 102,000 Depreciation expense (sales equipment) 4,980 Depreciation understatement due to error-2014 (net of tax) | 17,700 Maintenance and repairs expense (sales) 6,200 Dividends declared on preferred stock Miscellaneous selling expenses 4,715 Dividends declared on common stock 9,000 37,000 Office supplies used 3,450 Telephone and Internet expense (administration) 2,820 The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding. a. Using the multiple-step form, prepare an income statement for the year ended June 30, 2017. b. Prepare a retained earnings statement for the year ended June 30, 2017. c. Using the single-step form, prepare an income statement for the year ended June 30, 2017. d. Prepare a retained earnings statement for the year ended June 30, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following account balances were included in the trial balance of Twain Corporation at June 30, 2017.
Sales revenue
$1,578,500 Depreciation expense (office furniture and equipment)
$7,250
Sales discounts
31,150
Property tax expense
7,320
Cost of goods sold
896,770
Bad debt expense (selling)
4,850
Salaries and wages expense (sales)
56,260
Maintenance and repairs expense (administration)
9,130
Sales commissions
97,600
Office expense
6,000
Travel expense (salespersons)
28,930
Sales returns and allowances
62,300
Delivery expense
21,400
Dividends received
38,000
Entertainment expense
14,820
Interest expense
18,000
Telephone and Internet expense (sales)
9,030
Income tax expense
102,000
Depreciation expense (sales equipment)
4,980
Depreciation understatement due to error-2014 (net of tax) | 17,700
Maintenance and repairs expense (sales)
6,200
Dividends declared on preferred stock
Miscellaneous selling expenses
4,715
Dividends declared on common stock
9,000
37,000
Office supplies used
3,450
Telephone and Internet expense (administration) 2,820
The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding.
a. Using the multiple-step form, prepare an income statement for the year ended June 30, 2017.
b. Prepare a retained earnings statement for the year ended June 30, 2017.
c. Using the single-step form, prepare an income statement for the year ended June 30, 2017.
d. Prepare a retained earnings statement for the year ended June 30, 2017.
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