Presented below is the trial balance of Thompson Corporation at December 31, 2014.

profileaccounting teacher
 (Not rated)
 (Not rated)
Chat
P4-2 (Single-Step Income, Retained Earnings, Periodic Inventory) Presented below is the trial balance of Thompson Corporation at December 31, 2014.
 
 
                                                               THOMPSON CORPORATION
                                                                            Trial Balance
                                                                       December 31, 2014
 
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
 
1,100,000
Notes Receivable
110,000
 
Accounts Payable
 
49,000
Accumulated Depreciation-Equipment
 
28,000
Sales Discounts
14,500
 
Sales Returns
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-Building
 
19,600
Inventory
89,000
 
Building
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 2014 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 are outstanding the entire year.
    • 8 years ago
    Presented below is the trial balance of Thompson Corporation at December 31, 2014.
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      p4-2_thompson_corp.xls