The following account balances were included in the trial balance of Castle Corp
ID: 2524590 • Letter: T
Question
The following account balances were included in the trial balance of Castle Corporation at June 30, 2017.
The Retained Earnings account had a balance of $468,000 at July 1, 2016. There are 150,000 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
8,68000 12,90000 8,630.00 4,850.00 Seles Revenue $2,100,50000 Depreciation Expense(Office Furniture & Equipment) 2,00 Property Tax Expense Cost of Goods Sold alaries and Wages Expense Sales) Sales Commissions Travel Expense (Salespeople Freipht-Out Entertainment Expense Telephone and Internet Expense (Sales) Depreciation Expense (Sales Equipment Maintenance and Repairs (Sales Miscellaneous Experses (Sales) Office Supplies Used Telephone and Internet Expense (Administration 1,490,30000 Bad Debt Expense ISellirgl 4,0000 Maintenance and Repairs Experse (Administration 135,800.00 Office Expense 1,800.00 Sales Returns&Allowarces; 1,800.00 Dividends Received 21,930.00 Interest Expense 1130000 Income Tax Expense 36,870.00 2,10000 37,500.00 38,000.00 31000.00 15,000.00 45.0?00 3,50000Depreciation Overstatement (due to error 201S net of tax 29000 Dividends Declared on Preferred Stock 6.570.00 Dividends Declared on Common Stock 2,900.00 1.90000Explanation / Answer
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Single Step Revenues & Gains Sales 2,100,500.00 Dividends received 2,100.00 Depreciation overstatement 31,000.00 Total revenues and incomes 2,133,600.00 Expenses & Losses Sales Discounts 12,680.00 COGS 1,490,300.00 Salaries and wages (sales) 54,600.00 Sales commission 135,800.00 Travel expense (sales) 41,600.00 Freight out 31,800.00 Entertainment exp 21,930.00 Telephone Exp (sales) 11,300.00 Depreciation expense (sales equipment) 3,500.00 Maintenance & Repairs (sales) 2,900.00 Misc Expenses (sales) 6,570.00 Office supplies used 2,900.00 Telephone Exp (admin) 4,900.00 Depreciation expense (office) 8,680.00 property tax 12,900.00 Bad debt (sales) 8,630.00 Maintenance & Repairs (admin) 4,860.00 Office Exp 7,500.00 Sales return and allowances 36,870.00 Interest expense 37,500.00 Income tax expense 38,000.00 Total expenses and losses 1,975,720.00 Net Income 157,880.00 - Dividends declared on preffered stock 15,000.00 - Dividends declared on common stock 45,000.00 Transfer to retained earnings 97,880.00