Presented below is the trial balance of Thompson Corporation at December 31, 2015.

Instructions Prepare an 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 ordinary shares were outstanding the entire year.

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Purchase Discounts Cash THOMPSON CORPORATION TRIAL BALANCE DECEMBER 31, 2015 Debit Credit 10,000 189,700 105,000 Accounts Receivable Rent Revenue Retained Earnings 18,000 160,000 Salaries and Wages Payable Sales Revenue 18,000 1,100,000 Notes Receivable 110,000 Accounts Payable 49,000 Accumulated Depreciation-Equipment 28,000 Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable 70,000 Selling Expenses 232,000 Administrative Expenses 99,000 Share Capital-Ordinary 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-Buildings 19,600 Inventory Buildings 89,000 98,000 Purchases 610,000 Totals 1,907,600 1,907,600