The trial balance follows for Thompson Corporation at December 31, 2017:

A physical count of inventory on December 31 resulted in an inventory amount of $64,000 thus, cost of goods sold for 2014 is $645,000. 

Instructions: 

Prepare a 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, 2017 Debits Credits 0 $10,000 Purchase Discounts Cash Accounts Receivable Rent Revenue Retained Earnings Salaries and Wages Payable Sales Revenue Notes Receivable Accounts Payable Accumulated Depreciation-Equipment Sales Discounts Sales Returns and Allowances Notes Payable Selling Expenses Administrative Expenses Common Shares Income Tax Expense Dividends Allowance for Doubtful Accouunts Supplies Freight-in Land Equipment Bonds Payable Gain on Sale of Land Accumulated Depreciation-Bulding Invento Building Purchases $189,700 105,000 18,000 160,000 18,000 1,100,000 110,000 49,000 28,000 14,500 17,500 70,000 232,000 99,000 300,000 53,900 45,000 5,000 14,000 20,000 70,000 140,000 100,000 30,000 19,600 89,000 98,000 610,000 Totals $1,907,600 $1,907,600