The following account balances were included in the trial balance of Twain Corporation at June 30, 2014.

The Retained Earnings account had a balance of $337,000 at July 1, 2013. There are 80,000 shares of common stock outstanding.
Instructions
(a) Using the multiple-step form, prepare an Income Statement and a retained earnings statement for the year ended June 30, 2014.
(b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014.

Transcribed Image Text:

Sales revenue $1,578,500 31,150 Sales discounts 896,770 56,260 97,600 28,930 Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Delivery expense Entertainment expense Telephone and Internet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) 21,400 14,820 9,030 4,980 6,200 4,715 3,450 2,820 Sales revenue $1,578,500 31,150 Sales discounts 896,770 56,260 97,600 28,930 Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Delivery expense Entertainment expense Telephone and Internet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) 21,400 14,820 9,030 4,980 6,200 4,715 3,450 2,820

Answer rating: 100% (QA)

a Twain Corporation Multiplestep Income Statement For the Year Ended June 30 2014 Particulars Amount Amount Sales Revenue Sales revenue 1578500 Deduct ... View the full answer