(Single-Step Income, Retained Earnings, Periodic Inventory) Presented below is the trial balance of Thompson Corporation at December 31, 2014.
December 31, 2014
|Salaries and Wages Payable||18,000|
|Income Tax Expense||53,900|
|Allowance for Doubtful Accounts||5,000|
|Gain on Sale of Land||30,000|
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
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. 30,000 shares of common stock are outstanding the entire year.