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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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.
Transcribed Image Text: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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