Question

4.980 P4-4 (L03,4,5,6) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2017 Sales revenue $1,578,500 Deprecajon expense (office Sales discounts 31,150 furnite and equipment) Cost of goods sold 896,770 Property tax expenses Salaries and wages expense (sales) 56,260 Bad debt expense (selling 4,850 Sales commissions 97,600 Maintenance and repair Travel expense (salespersons) 28,930 expense (administration Delivery expense 21400 Office expense 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) Maintenance and repairs expense (sales) 6,200 Miscellaneous selling expenses 4,715 Depreciation understatement Office supplies used 3,450 due to error2014 (net of tax) 17,700 Telephone and temper Dividends declared on (administration) 2,820 preferred stock 9,000 Dividends declared on common stock 37,000 The Retained Eamings account had a balance of $337,000 at July 1, 2016. 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, 2017 (b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2017 DA.

Answer 1

TON Inatiple step in come statement TWIN CORPORATION Income statement For me year ended June 30, 2017 dissout Sales (1598500 1485050 315 08-6236 $ 350 Cost good sad 896770 Gross protit 588230 56260 07600 289 30 21400 4980 operating expense : Seling: Saloring and crack expense (sales) sales commission word expense (saleponos belivery expense Telephone 8 internet expenser sale) 9030 Depreciation lapense. (sace) Maintanance and repens (Sale) 6200 Miscellaneous selling Ropme. Baddest expense Cselling) 4850 Sates retum and allow Administrative stice suppleo cused Telephone and internet expern Depresanon capino othe, Trnit, ea) Montain and repair expense. 9130 4715 233965 3450 2820 9050 office expense Good 28650 262 615 88000 Total operational expenses Other revenue and expenses Divident revered intress expense Paprtevarchonender steed, entrfimer lepns Total otros revenue and expenses (18000) 1422 15180

330845 income batore income dan 17320 tex lepeno income taxes property Income tax expenses 102000 Ned income 221525 1337000 Retouned caming of begining parod less: correction of proan eroon (17700 Deprevation anderstate 319 god Retaned coming begning restated Caooo Dirndent on Preafered svou Dividnt on common stock 37000 Returned eaming out and of period .221525 276345+ 314 300-9000-37000) 494825

single-step. Income statement Revennos 1485050 Saler: otur revenues Prviant rewered. 39000 1503050 votal revenue Expenses 806770 97600 56060 28930 21400 14820 9030 4980 6200 4715 Cost A good sold sales comisson Salong and wage ward expose baivery expense entertiment expresse Telephone and initand exporse Depreciation expense Maintanance and bepar exponse Misellaneous selong expone tire supples and. Telphore internet expense Depreviron expose propsty tax expense Bad debt expens. mantoure and repon. Mice expers inmest Capma income tax expen. Derecho end 345o 2820 7250 7.32 4850 9130 Good 18000 102000 oo 301 525 Total expense. os Net income 221525

Statement of returned coming Begining retoned aming 319300 22.1525 protot 520825 sus to loal. paid Dirdent Preference share common stocle Gooo) 37000) 1494825 Retoned comin at end