(Multiple and single step income, retained earnings)

P4.4B (LO 2,3,4,5) (Multiple- and Single-Step Income, Retained Earnings) The following account balances were included in the trial balance of Castle Corporation at June 30, 2020: $ 8,680 12,900 8,630 Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Freight-out Entertainment expense Telephone and Internet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous expenses (sales) Office supplies used Telephone and Internet expense (administration) $2,100,500 12,680 1,490,300 54,600 135,800 41,600 31,800 21,930 11,300 3,500 2,900 6,570 2,900 Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs expense (administration) Office expense Sales returns and allowances Dividends received Interest expense Income tax expense Depreciation overstatement due to error-2018 (net of tax) Dividends declared on preferred stock Dividends declared on common stock 4,860 7,500 36,870 21,000 37,500 68,000 31,000 4,900 15,000 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 Instructions (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