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The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. Sales revenue $1,578,500 Depreciation expense (office furniture and

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

Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250
Sales discounts 31,150 Property tax expense 7,320
Cost of goods sold 896,770 Bad debt expense (selling) 4,850
Salaries and wages expense (sales) 56,260 Maintenance and repairs expense (administration) 9,130
Sales commissions 97,600 Office expense 6,000
Travel expense (salespersons) 28,930 Sales returns and allowances 62,300
Delivery expense 21,400 Dividends received 38,000
Entertainment expense 14,820 Interest expense 18,000
Telephone and Internet expense (sales) 9,030 Income tax expense 102,000
Depreciation expense (sales equipment) 4,980 Depreciation understatement due to error2014 (net of tax) 17,700
Maintenance and repairs expense (sales) 6,200 Dividends declared on preferred stock 9,000
Miscellaneous selling expenses 4,715 Dividends declared on common stock 37,000
Office supplies used 3,450
Telephone and Internet expense (administration) 2,820

The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding.

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.)

Prepare a retained earnings statement for the year ended June 30, 2017. (List items that increase adjusted retained earnings first.)

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