(Single-Step Statement, Retained Earnings Statement, Periodic Inventory) Presented below is the trial balance of Thompson Corporation on December 31, 2017.
THOMPSON CORPORATION
|
TRIAL BALANCE
|
DECEMBER 31, 2017
|
| Debit (\() | Credit (\)) |
Purchase Discounts | | \(10,000 |
Cash | \)189,700 | |
Accounts receivables | 105,000 | |
Rent Revenue | | 18,000 |
Retained Earnings | | 160,000 |
Salaries and Wages payable | | 18,000 |
Sales Revenue | | 1,100,000 |
Notes Receivables | 110,000 | |
Accounts payable | | 49,000 |
Accumulated Depreciation | | 28,000 |
Sales discount | 14,500 | |
Sales return and allowances | 17,500 | |
Notes payable | | 70,000 |
Selling expenses | 232,000 | |
Administrative expenses | 99,000 | |
Common Stock | | 300,000 |
Income tax expenses | 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 | | 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 \(64,000; thus, cost of goods sold for 2017 is \)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.
