Problem # 2

The following balances were included in the Adjusted Trial Balance of:

Carpenter Corporation as of December 31, 2021.

Note: not all balances were given and of the ones given, not all will be used.

Sales $1,587,000

Depreciation of office furniture and equipment 9,130

Sales discounts 31,150

Cost of goods sold 869,000

Real estate local taxes - Administration 7,320

Sales salaries 56,260

Bad debt expenseselling 4,850

Sales commissions 150,000

Building expenseprorated to administration 7,250

Travel expensesalespersons 28,930

Freight-out 21,400

Miscellaneous office expenses 14,820

Entertainment expense 6,000

Sales returns 38,000

Telephone and Internet expensesales 9,030

Dividend Revenue 19,000

Depreciation of sales equipment 4,980

Bond interest expense 18,000

Building expenseprorated to sales 6,200

Income taxes 180,000

Miscellaneous selling expenses 4,715

Depreciation overstatement due to error in 2009 (net of tax) 37,000

Office supplies Expense - Administration 5,100

Telephone and Internet expenseadministration 2,820

Dividends declared on preferred stock 17,700

Dividends declared on common stock 40,000

The Retained Earnings account had a balance of $100,000 at January 1, 2021.

There are 50,000 shares of common stock outstanding for the whole year.

Instructions:

Using Excel, create:

(1) a multiple-step income statement for the year ending December 31, 2021

(2) a retained earnings statement for the year ending December 31, 2021

You must format each statement so it prints out on a single sheet of paper (81/2 x 11, Portrait).