Question 1 The following account balances were included in the trial balance of Martinez Corporation at June 30, 2017: Sales revenue $1,937,500 Telephone and Internet expense (office) $3,720 Sales discounts 31,150 Salaries and wages (office) 7,320 Cost of goods sold 1,071,770 Supplies expense (sales) 5,550 Salaries and wages (sales) 56,060 Repairs and maintenance expense (office) 9,230 Sales commission expense 99,000 Depreciation understatement due to error-2015 (net of tax) 18,300 Advertising expense (sales) 29,830 Miscellaneous expense (office) 6,600 Freight-out 22,000 Sales returns and allowances 63,500 Entertainment expense (sales) 15,020 Dividend revenue 39,600 Telephone and Internet expense (sales) 9,530 Interest expense 18,500 Depreciation of sales equipment 5,980 Income tax 133,200 Repairs and main tenance expense (sales) Miscellaneous expenses (sales) 7,200 Dividends declared on preferred shares 9,400 5,415 Dividends declared on common shares 33,800 Supplies expense (office) 3,550 Depreciation of office furniture and equipment 7,850 During 2017, Martinez incurred production salary and wage costs of $707,300, consumed raw materials and other production supplies of $478,170, and had an increase in work-in -process and finished goods inventories of $113,700. The Retained Earnings account had a balance of $282,000 at June 30, 2017, before closing. There are 180,000 common shares outstanding. Assume Martinez has elected to adopt IFRS. (Hint: Production payroll and materials costs reduced by the increase in ending work-in-process and finished goods inventories = the cost of goods sold.) Using the single-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.) TWAIN CORPORATION Income Statement Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.) TWAIN CORPORATION Retained Earnings Statement Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.) TWAIN CORPORATION Retained Earnings Statement Question 1 The following account balances were included in the trial balance of Martinez Corporation at June 30, 2017: Sales revenue $1,937,500 Telephone and Internet expense (office) $3,720 Sales discounts 31,150 Salaries and wages (office) 7,320 Cost of goods sold 1,071,770 Supplies expense (sales) 5,550 Salaries and wages (sales) 56,060 Repairs and maintenance expense (office) 9,230 Sales commission expense 99,000 Depreciation understatement due to error-2015 (net of tax) 18,300 Advertising expense (sales) 29,830 Miscellaneous expense (office) 6,600 Freight-out 22,000 Sales returns and allowances 63,500 Entertainment expense (sales) 15,020 Dividend revenue 39,600 Telephone and Internet expense (sales) 9,530 Interest expense 18,500 Depreciation of sales equipment 5,980 Income tax 133,200 Repairs and main tenance expense (sales) Miscellaneous expenses (sales) 7,200 Dividends declared on preferred shares 9,400 5,415 Dividends declared on common shares 33,800 Supplies expense (office) 3,550 Depreciation of office furniture and equipment 7,850 During 2017, Martinez incurred production salary and wage costs of $707,300, consumed raw materials and other production supplies of $478,170, and had an increase in work-in -process and finished goods inventories of $113,700. The Retained Earnings account had a balance of $282,000 at June 30, 2017, before closing. There are 180,000 common shares outstanding. Assume Martinez has elected to adopt IFRS. (Hint: Production payroll and materials costs reduced by the increase in ending work-in-process and finished goods inventories = the cost of goods sold.) Using the single-step form, prepare an income statement for the year ended June 30, 2017. (Round earnings per share to 2 decimal places, e.g. 1.48.) TWAIN CORPORATION Income Statement Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.) TWAIN CORPORATION Retained Earnings Statement Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.) TWAIN CORPORATION Retained Earnings Statement