prepare a single step income statement and a retained earnings statement assume that 644355
(Single Step Income, Retained Earnings, Periodic Inventory) Presented below is the trial balance of Thompson Corporation at December 31, 2012.
|
THOMPSON CORPORATION |
||
|
Debits |
Credits |
|
|
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 2012 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.