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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

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 (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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions