The following account balances were included in the trial balance of Twain Corporation at June 30, 2019.

The Retained Earnings account had a balance of $337,000 at July 1, 2018. There are 80,000 ordinary shares outstanding.
Instructions
Prepare an income statement and a retained earnings statement for the year ended June 30, 2019.

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$ 7,250 $1,578,500 Depreciation Expense (office furniture and equipment) Sales Revenue Sales Discounts 31,150 Cost of Goods Sold 896,770 Property Tax Expense 7,320 Salaries and Wages Expense (sales) 56,260 Bad Debt Expense (selling) 4,850 Sales Commissions 97,600 Maintenance and Repairs Expense (administration) 9,130 Travel Expense (salespersons) 28,930 Delivery Expense 21,400 Office Expenses 6,000 Entertainment Expense 14,820 Sales Returns and Allowances 62,300 Telephone and Internet Expense (sales) 9,030 Dividend Revenue 38,000 Interest Expense 18,000 Depreciation Expense (sales equipment) 4,980 Income Tax Expense 102,000 Depreciation Understatement Due to Error-2017 (net of tax) 17,700 Maintenance and Repairs Expense (sales) 6,200 Miscellaneous Selling Expenses 4,715 Dividends (declared on preference shares) 9,000 3,450 Supplies Expense 37,000 Telephone and Internet Expense (administration) 2,820 Dividends (declared on ordinary shares)