Prepare an income statement and aretained earnings statement

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Reference no: EM132214010

Problem : The following account balances were included in the trial balance of Castle Corporation at June 30 2017.

Sales revenue	$7,100,500	Depreciation expense (office
Salesdot:00111s	12,680	and equipment)	$ 8,680
Cost of goods sold	1,490,300	Property tax expense	12,9430
Salaries and wages expense (sales)	54,600	Bad debt expense (selling)	8,630
Sales commosions	135,800	Maintenance and repays
Dave/expense(salespersons)	41,600	expense (administration)	4,860
Freight-out	31,800	Office expense	7,500
Entertainment expense	71,930	Sales returns and allowance	36,870
Telephoneand Internet expense (sales)	11,300	Dendendsrecerved	21,000
Depreciation expense (salesequipment)	3,500	Interest expense	37,500
Maintenance and repairs expense (sales)	2,900	Income tax expense	68,000
Mncellaneous expenses (sales)	6,570	Depreciation overstatement
Office supplies used	2,900	due to error-2015 (net of tax)	31,000
Telephone and Internet expense		Dividends declared on
(admtnrstration)	4.900	preferred stock	15,000
		Dividends d ecla red On C/S	45,000

The Retained Earnings account had a balance of $468,000 at July 1, 2016. There are 150,000 shares of common stock outstanding. Instructions

(a) Using the multiple-step form, prepare an income statement and aretained earnings statement for the year ended June 30, 2017.

(b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2017.

Reference no: EM132214010

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