Prepare an income statement and a retained earning statement

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Reference no: EM131807895

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

Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions	52,100,500 12,680 1,490,300 54,600 135,800	Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs
Travel expense (salespersons)	41,600	expense (administration)
Freight-out	31,100	Office expense	7,500
Entertainment expense.	21,930	Sales returns and allowances	30870
Telephone and Internet expense (sales)	11,300	Dividends received	21,000
Depreciation expense (sales equipment)	3,500	Interest expense	37,500
Maintenance and repairs expense (sales)	2,900	Income tax expense	63,000
Miscellaneous expenses (sales)	6,570	Depreciation overstatement
Office supplies used	2,900	due to error-2012 (net of tax)	31,000
Telephone and Internet expense (administration)	4,900	Dividends declared on preferred stock	15,000
		Dividends declared on common stock	45030

The Retained Earnings account had a balance of $468,000 at July 1, 2013. There are 150,000 shares of common stock outstanding.

Instructions

Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014.

Reference no: EM131807895

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