Prepare single-step income statement and retained earnings

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Reference no: EM13516472

Single-Step Income Statement

McGrath Co. on June 30, 2008, reported a retained earnings balance of $1,475,000 before closing the books. The books of the company showed the following account balances on June 30, 2008:

Sales                                                                      

$2,870,000

Inventory: July 1, 2007                                                          

150,000

June 30, 2008                                                        

175,000

Sales Returns and Allowances                                                    

120,000

Purchases                                                                   

1,542,000

Purchase Discounts                                                            

32,000

Dividends Declared                                                            

300,000

Selling and General Expenses                                                     

283,000

Interest Revenue                                                             

72,000

Income Taxes                                                                 

270,900

Instructions:

Prepare a single-step income statement and a retained earnings statement. McGrath Co. has 275,000 shares of common stock outstanding.

Reference no: EM13516472

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