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.