Prepare a multiple-step income statement and a retained earnings statement. P4-2

Question

Prepare a multiple-step income statement and a retained earnings statement. P4-2 L03,4,6 trial bala EXCEL (Single-Step Statement, Retained Earnings Statement, Periodic Inventory) Presented below is the nce of Thompson Corporation at December 31, 2017. THOMPSON CORPORATION TRIAL BALANCE DECEMBER 31, 2017 Debit Credit $ 10,000 Purchase Discounts Cash Accounts Receivable Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable Accounts Payable Accumulated Depreciation-Equipment Sales Discounts Sales Returns and Allowances Notes Payable Selling Expenses Administrative Expenses Common Stock Income Tax Expense Cash Dividends Allowance for Doubtful Accounts Supplies Freight-In Land Equipment Bonds Payable Gain on Sale of Land Accumulated Depreciation--Buildings Inventory Buildings Purchases $ 189,700 105,000 18,000 160,000 18,000 1,100,000 110,000 49,000 28,000 14,500 17,500 70,000 232,000 99,000 300,000 53,900 45,000 5,000 14,000 20,000 70,000 140,000 100,000 30,000 19,600 89,000 98,000 610,000 $1,907,600 Totals $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

Explanation / Answer

Income Statement For the year ended December 31, 2017 $ $ Sales revenue 1100000 Sales return and allowances -17500 Sales discounts -14500 Net Sales 1068000 Cost of goods sold 645000 Gross margin 423000 Expenses: Selling expense 232000 Administrative expenses 99000 Total expenses 331000 Other income Gain on sale of land 30000 Rent revenue 18000 Total other income 48000 Income before taxes 140000 Income tax expenses 53900 Net Income 86100 THOMPSON CORPORATION Statement of Retained earnings For the year ended December 31, 2017 $ $ Retained earnings: Opening balance 160000 (+) Net income of the year 86100 (-) Dividends -45000 Ending balance 201100

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---