P4-2 Presented below is the trial balance of Thompson
Corporation at December 31, 2014.
THOMPSON
CORPORATION
Trial
Balance
December
31, 2014
Debits
|
Credits
|
|
Purchase Discounts
|
$10,000
|
|
Cash
|
$189,700
|
|
Accounts Receivable
|
105,000
|
|
Rent Revenue
|
18,000
|
|
Retained Earnings
|
160,000
|
|
Salaries and Wages
Payable
|
18,000
|
|
Sales
|
1,100,000
|
|
Notes Receivable
|
110,000
|
|
Accounts Payable
|
49,000
|
|
Accumulated
Depreciation-Equipment
|
28,000
|
|
Sales Discounts
|
14,500
|
|
Sales Returns
|
17,500
|
|
Notes Payable
|
70,000
|
|
Selling Expenses
|
232,000
|
|
Administrative Expenses
|
99,000
|
|
Common Stock
|
300,000
|
|
Income Tax Expense
|
53,900
|
|
Cash Dividends
|
45,000
|
|
Allowance for Doubtful
Accounts
|
5,000
|
|
Supplies
|
14,000
|
|
Freight-in
|
20,000
|
|
Land
|
70,000
|
|
Equipment
|
140,000
|
|
Bonds Payable
|
100,000
|
|
Gain on Sale of Land
|
30,000
|
|
Accumulated
Depreciation-Building
|
19,600
|
|
Inventory
|
89,000
|
|
Building
|
98,000
|
|
Purchases
|
610,000
|
|
Totals
|
$1,907,600
|
$1,907,600
|
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
retained earnings statement. Assume that the only changes in retained earnings
during the current year were from net income and dividends. Thirty thousand shares
of common stock are outstanding the entire year.
TUTORIAL
PREVIEW
Prepare a single-step income statement and a
retained earnings statement. Assume that the only changes in retained earnings
during the current year were from net income and dividends. Thirty thousand shares
of common stock are outstanding the entire year.
THOMPSON
CORPORATION
Income
Statement
For
the Year Ended December 31, 2014
Revenues
|
||
Net sales ($1,100,000 -
$14,500 - $17,500)
|
$1,068,000
|
|
Gain on sale of land
|
30,000
|
|
Rent revenues
|
18,000
|
|
Total revenues
|
$1,116,000
|
|
File name: P4-2 Thompson Corp.xls File type: xls PRICE: $5
