Problem 4-4

The following account balances were included in the trial balance of Ayayai Corporation at June 30, 2017.

Sales revenue		$1,585,240		Depreciation expense (office furniture and equipment)		$6,895
Sales discounts		31,680		Property tax expense		7,228
Cost of goods sold		906,300		Bad debt expense (selling)		5,231
Salaries and wages expense (sales)		56,850		Maintenance and repairs expense (administration)		9,178
Sales commissions		98,080		Office expense		5,510
Travel expense (salespersons)		35,700		Sales returns and allowances		58,448
Delivery expense		21,590		Dividends received		40,410
Entertainment expense		14,920		Interest expense		19,580
Telephone and Internet expense (sales)		9,120		Income tax expense		98,090
Depreciation expense (sales equipment)		4,820		Depreciation understatement due to error2014 (net of tax)		16,634
Maintenance and repairs expense (sales)		6,491		Dividends declared on preferred stock		9,900
Miscellaneous selling expenses		4,301		Dividends declared on common stock		37,780
Office supplies used		3,160
Telephone and Internet expense (administration)		2,816

The Retained Earnings account had a balance of $337,860 at July 1, 2016. There are 80,380 shares of common stock outstanding.