6. The following account balances were included in the trial balance of Canopy Corporation at June 30, 2020:

Sales revenue $2,100,500 Depreciation expense (office furniture and equipment) $ 8,680

Sales discounts 12,680 Cost of goods sold 1,490,300 Travel expense (salespersons) 41,600 Maintenance and repairs expense (administration) 4,860

Property tax expense 12,900 Salaries and wages expense (sales) 54,600

Bad debt expense (selling) 8,630 Sales commissions 135,800

Freight-out 31,800 Office expense 7,500

Entertainment expense 21,930 Sales returns and allowances 36,870

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 68,000

Miscellaneous expenses (sales) 6,570 Depreciation overstatement due to error-2018 (net of tax) 31,000

Office supplies used 2,900 Telephone and Internet expense (administration) 4,900

Dividends declared on preferred stock 15,000 Dividends declared on common stock 45,000

The Retained Earnings account had a balance of $468,000 at July 1, 2019. There are 150,000 shares of common stock

outstanding.

Required:

(a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.

(b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2020.