Maurice Tutor
$15/per page/Negotiable
(Single-Step Income, Retained Earnings, Periodic Inventory) Presented below is the trial balance of Thompson Corporation at December 31, 2012.
|
THOMPSON CORPORATION |
||
| Â |
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.