The following is the trial balance of Thompson Corporation at December 31, 2020.

A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2020 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 were outstanding the entire year.

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Thompson Corporation Trial Balance December 31, 2020 Debit Credit $ 10,000 Purchase Discounts $ 189,700 Cash Accounts Receivable 105,000 Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable 18,000 160,000 18,000 1,100,000 110,000 Accounts Payable Accumulated Depreciation-Equipment Sales Discounts 49,000 28,000 14,500 Sales Returns and Allowances 17,500 Notes Payable Selling Expenses Administrative Expenses Common Stock 70,000 232,000 99,000 300,000 Income Tax Expense 53,900 Cash Dividends 45,000 Allowance for Doubtful Accounts 5,000 Supplies Freight-In Land 14,000 20,000 70,000 140,000 Equipment Bonds Payable Gain on Sale of Land 100,000 30,000 Accumulated Depreciation-Buildings Inventory (January 1, 2020) Buildings 19,600 89,000 98,000 Purchases 610,000 Totals $1,907,600 $1,907,600