(LO 2, 3, 4, 5 ) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2020. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs expense (administration) 9,130 Travel expense (salespersons) 28,930 Delivery expense 21,400 Office expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement due to error—2017 (net of tax) 17,700 Office supplies used 3,450 Telephone and Internet expense (administration) 2,820 Dividends declared on preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2019. There are 80,000 shares of common stock outstanding. Instructions a. Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
(LO 2, 3, 4, 5 ) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2020. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs expense (administration) 9,130 Travel expense (salespersons) 28,930 Delivery expense 21,400 Office expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000 Miscellaneous selling expenses 4,715 Depreciation understatement due to error—2017 (net of tax) 17,700 Office supplies used 3,450 Telephone and Internet expense (administration) 2,820 Dividends declared on preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Earnings account had a balance of $337,000 at July 1, 2019. There are 80,000 shares of common stock outstanding. Instructions a. Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 8E: Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives...
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(LO 2, 3, 4, 5 ) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2020.
The Retained Earnings account had a balance of $337,000 at July 1, 2019. There are 80,000 shares of common stock outstanding.
Sales revenue
|
$1,578,500
|
Depreciation expense (office furniture and equipment)
|
$7,250
|
Sales discounts
|
31,150
|
|
|
Cost of goods sold
|
896,770
|
Property tax expense
|
7,320
|
Salaries and wages expense (sales)
|
56,260
|
|
4,850
|
Sales commissions
|
97,600
|
Maintenance and repairs expense (administration)
|
9,130
|
Travel expense (salespersons)
|
28,930
|
|
|
Delivery expense
|
21,400
|
Office expense
|
6,000
|
Entertainment expense
|
14,820
|
Sales returns and allowances
|
62,300
|
Telephone and Internet expense (sales)
|
9,030
|
Dividends received
|
38,000
|
Depreciation expense (sales equipment)
|
4,980
|
Interest expense
|
18,000
|
Maintenance and repairs expense (sales)
|
6,200
|
Income tax expense
|
102,000
|
Miscellaneous selling expenses
|
4,715
|
Depreciation understatement due to error—2017 (net of tax)
|
17,700
|
Office supplies used
|
3,450
|
|
|
Telephone and Internet expense (administration)
|
2,820
|
Dividends declared on
|
9,000
|
|
|
Dividends declared on common stock
|
37,000
|
Instructions
a.
Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.
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