Presented below is the trial balance of Thompson Corporation at December 31, 2012.

A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, cost of goods sold for 2012 is $645,000.InstructionsPrepare 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. Thirty thousand shares of common stock were outstanding the entireyear.

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THOMPSON CORPORATION TRIAL BALANCE DE CEMBER 31, 2012 Debits Credits $ 10,000 Purchase Discounts $ 189,700 105,000 Cash Accounts Receivable Rent Revenue 18,000 160,000 Retained Earnings Salaries and Wages Payable Sales Revenue 18,000 1,100,000 Notes Receivable 110,000 Accounts Payable Accumulated Depreciation-Equipment 49,000 28,000 Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable Selling Expenses Administrative Expenses 70.000 232,000 99,000 Common Stock 300,000 Income Tax Expense 53,900 45,000 Cash Dividends Allowance for Doubtful Accounts Supplies Freight-in Land 5,000 14,000 20,000 70,000 Equipment Bonds Payable Gain on Sale of Land 140,000 100,000 30,000 Accumulated Depreciation-Buildings Inventory Buildings Purchases 19,600 89,000 98,000 610,000 $1,907,600 $1.907.600 Totals