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.