Problem 4-2

Presented below is the trial balance of Windsor Corporation at December 31, 2017.

WINDSOR CORPORATION TRIAL BALANCE DECEMBER 31, 2017
		Debits			Credits
Purchase Discounts					$13,720
Cash		$193,420
Accounts Receivable		108,720
Rent Revenue					21,720
Retained Earnings					163,720
Salaries and Wages Payable					21,720
Sales Revenue					1,103,720
Notes Receivable		113,720
Accounts Payable					52,720
Accumulated DepreciationEquipment					28,744
Sales Discounts		18,220
Sales Returns and Allowances		21,220
Notes Payable					73,720
Selling Expenses		235,720
Administrative Expenses		102,720
Common Stock					303,720
Income Tax Expense		57,620
Cash Dividends		48,720
Allowance for Doubtful Accounts					8,720
Supplies		17,720
Freight-in		23,720
Land		73,720
Equipment		143,720
Bonds Payable					120,832
Gain on Sale of Land					33,720
Accumulated DepreciationBuildings					20,344
Inventory		92,720
Buildings		101,720
Purchases		613,720
Totals		$1,967,120			$1,967,120

A physical count of inventory on December 31 resulted in an inventory amount of $67,720; thus, cost of goods sold for 2017 is $648,720.

a) Prepare a single-step income statement. 30,372 shares of common stock were outstanding the entire year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

b)Prepare a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. (List items that increase retained earnings first.)