(Multiple- and Single-step Income, Retained Earnings) The following account balances were included in the trial balance of J.R. Reid Corporation at June 30, 2004.

The Retained Earnings account had a balance of $337,000 at June 30, 2004, before closing. There are 80,000 shares of common stock outstanding.
Instructions

(a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2004.

(b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2004.

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Sales $1,678,500 Depreciation of office furniture Sales discounts 31,150 and equipment $ 7,250 Cost of goods sold 896,770 Sales salaries 56,260 Real estate and other local taxes Bad debt expense-selling 7,320 4,850