The following account balances were included in the trial balance of Castle Corporation at June 30,2014.

The Retained Earnings account had a balance of $468,000 at July 1, 2013. There are 150,000 shares of common stock outstanding.

Instructions

Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014.

Sales revenue Sales discounts Cost of goods sold Salaries and wages expense (sales) Sales commissions Travel expense (salespersons) Freight-out Entertainment expense Telephone and Internet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous expenses (sales) Office supplies used Telephone and Internet expense (administration) $2,100,500 Depreciation expense (office furniture and equipment 12,680 1,490,300 Property tax expense 54,600 Bad debt expense (selling) 135,800 Maintenance and repairs expense (administration) 41,600 office expense 31,100 21,930 Sales returns and allowances 11,300 Dividends received 3,500 Interest expense 2,900 Income tax expense 6,570 Depreciation overstatement due to error 2012 (net of tax) 2,900 Dividends declared on preferred stock 4,900 Dividends declared on common stock 8,680 12,900 8,630 7,500 36,870 21,000 37,500 68,000 31,000 15,000 45,000