The trial balance follows for Thompson Corporation at December 31, 2020:

A physical count of inventory on December 31 showed that there was $64,000 of inventory on hand.

Instructions

Prepare a condensed single-step income statement and a statement of retained earnings, assuming that Thompson is a private company that prepares financial statements in accordance with ASPE. Assume that the only changes in retained earnings during the current year were from net income and dividends.

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Thompson Corporation Trial Balance December 31, 2020 Debits Credits $ 10,000 Purchase discounts $ 189,700 Cash Accounts receivable 105,000 18,000 Rent revenue Retained earnings Salaries and wages payable 160,000 18,000 Sales revenue 1,100,000 Notes receivable 110,000 Accounts payable Accumulated depreciation-equipment 49,000 28,000 Sales discounts 14,500 Sales returns and allowances 17,500 Notes payable Selling expenses Administrative expenses 70,000 232,000 99,000 Common shares 300,000 Income tax expense 53,900 Dividends 45,000 Allowance for doubtful accounts 5,000 Supplies Freight in 14,000 20,000 Land 70,000 Equipment Bonds payable Gain on disposal of land Accumulated depreciation-buildings Inventory Buildings 140,000 100,000 30,000 19,600 89,000 98,000 Purchases 610,000 Totals $1,907,600 $1,907,600