The following account balances were included in the trial balance of Twain Corporation at June 30, 2022.

The Retained Earnings account had a balance of $337,000 at July 1, 2021. There are 80,000 ordinary shares outstanding.

Instructions

Prepare an income statement and a retained earnings statement for the year ended June 30, 2022.

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$1,578,500 Depreciation Expense (sales Sales Revenue Sales Discounts 31,150 equipment) $ 4.980 Cost of Goods Sold Maintenance and Repairs 896,770 Expense 56,260 (sales) Salaries and Wages Expense (sales) 6,200 Sales Commissions Miscellaneous Selling 97,600 Expenses 4,715 Travel Expense (salespersons) Delivery Expense 28,930 Supplies Expense 3.450 Telephone and Internet Expense 14,820 (administration) 21,400 Entertainment Expense 2,820 Telephone and Internet Expense (sales) Depreciation Expense (office furniture and 9,030 equipment) $ 7,320 Income Tax Expense 7,250 Property Tax Expense $102,000 4,850 Depreciation Understatement Bad Debt Expense (selling) Maintenance and Repairs Expense |(administration) Due to Error-2020 (net 9,130 of tax) Dividends (declared on 6,000 preference shares) 17,700 Office Expenses 9,000 Sales Returns and Allowances 62,300 Dividends (declared on ordinary shares) Dividend Revenue 38,000 37,000 Interest Expense 18,000