Question 2 The following account balances were included in the trial balance of Twain Corporation at June 30, 2014 Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Delivery expense Entertainment expense Telephone and Internet expense (sales) $1,594,400 31,990 905,600 56,350 97,820 38,100 21,670 14,975 9,092 Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs expense (administration) Office expense Sales returns and allowances Dividends received Interest expense Income tax expense Depreciation understatement due to error-2011 (net of tax) Dividends declared on preferred stock Dividends declared on common stock $7,309 7,356 4,944 9,232 6,026 62,560 39,500 19,800 108,900 18,600 9,100 37,400 Depreciation expense (sales equipment) 5,057 Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) 6,393 4,747 3,481 2,906 The Retained Earnings account had a balance of $340,800 at July 1, 2013. There are 79,500 shares of common stock outstanding