P4-2 (LO 3, 4, 6) Single-Step Statement, Retained Earnings Statement, Periodic Inventory The following is the trial balance of Thompson Corporation at December 31, 2020. THOMPSON CORPORATION Trial Balance December 31, 2020 10,000 Debit Credit $ $ 189,700 105,000 Instructions Prepare 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 THOMPSON CORPORATION Income Statement For the Year Ended December 31, 2020 Revenues Purchase Discounts Cash Accounts Receivable Rent Revenue Retained Earnings 18,000 160,000 Salaries and Wages Payable Sales Revenue 18,000 1,100,000 Notes Receivable 110,000 Expenses Accounts Payable Accumulated Depreciation-Equipment 49,000 28,000 Sales Discounts 14,500 Sales Returns and Allowances 17,500 Notes Payable 70,000 Selling Expenses 232,000 Administrative Expenses 99,000 4 Common Stock 300,000 Income Tax Expense 53,900 6 Cash Dividends 45,000 y Allowance for Doubtful Accounts 5,000 20 Supplies 14,000 29 Freight-In 20,000 30 Land 70,000 31 Equipment 140,000 12 Bonds Payable 33 Gain on Sale of Land 34 Accumulated Depreciation - Buildings 100,000 30,000 19,600 THOMPSON CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 35 Inventory 89,000 36 Buildings 98,000 17 Purchases 610,000 38 39 Totals $ 1,907,600 $ 1.907,600 40 A physical count of inventory on December 31 resulted in an inventory amount of $64,000; thus, 41 cost of goods sold for 2020 is $645,000. 42