The following account balances were included in the trial balance of Twain Corporation at June 30, 2020.

Sales revenue		$1,578,500		Depreciation expense (office furniture and equipment)		$7,250
Sales discounts		31,150		Property tax expense		7,320
Cost of goods sold		896,770		Bad debt expense (selling)		4,850
Salaries and wages expense (sales)		56,260		Maintenance and repairs expense (administration)		9,130
Sales commissions		97,600		Office expense		6,000
Travel expense (salespersons)		28,930		Sales returns and allowances		62,300
Delivery expense		21,400		Dividends received		38,000
Entertainment expense		14,820		Interest expense		18,000
Telephone and Internet expense (sales)		9,030		Income tax expense		102,000
Depreciation expense (sales equipment)		4,980		Depreciation understatement due to error—2014 (net of tax)		17,700
Maintenance and repairs expense (sales)		6,200		Dividends declared on preferred stock		9,000
Miscellaneous selling expenses		4,715		Dividends declared on common stock		37,000
Office supplies used		3,450
Telephone and Internet expense (administration)		2,820

The Retained Earnings account had a balance of $337,000 at July 1, 2019. There are 80,000 shares of common stock outstanding.

Using the multiple-step form, prepare an income statement for the year ended June 30, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Prepare a retained earnings statement for the year ended June 30, 2020. (List items that increase adjusted retained earnings first.)

Using the single-step form, prepare an income statement for the year ended June 30, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.)

Prepare a retained earnings statement for the year ended June 30, 2020. (List items that increase adjusted retained earnings first.)

Answer rating: 100% (QA)

Answer 1 Twain Corporation Income Statement For the Year Ended June 30 2020 Particulars Amount Amount Sales Revenue Sales revenue 1578500 Less Sales d... View the full answer