Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following account balances were included in the trial balance of Swifty Corporation at June 30, 2017. Sales revenue $1,585,350 Depreciation expense (office furniture and
The following account balances were included in the trial balance of Swifty Corporation at June 30, 2017.
Sales revenue | $1,585,350 | Depreciation expense (office furniture and equipment) | $7,704 | |||
Sales discounts | 33,010 | Property tax expense | 7,543 | |||
Cost of goods sold | 905,200 | Bad debt expense (selling) | 4,494 | |||
Salaries and wages expense (sales) | 57,430 | Maintenance and repairs expense (administration) | 9,479 | |||
Sales commissions | 98,700 | Office expense | 5,740 | |||
Travel expense (salespersons) | 35,400 | Sales returns and allowances | 64,934 | |||
Delivery expense | 22,110 | Dividends received | 38,980 | |||
Entertainment expense | 14,830 | Interest expense | 17,670 | |||
Telephone and Internet expense (sales) | 9,070 | Income tax expense | 108,190 | |||
Depreciation expense (sales equipment) | 5,217 | Depreciation understatement due to error2014 (net of tax) | 17,398 | |||
Maintenance and repairs expense (sales) | 5,893 | Dividends declared on preferred stock | 8,520 | |||
Miscellaneous selling expenses | 4,910 | Dividends declared on common stock | 37,030 | |||
Office supplies used | 3,116 | |||||
Telephone and Internet expense (administration) | 2,587 |
The Retained Earnings account had a balance of $350,680 at July 1, 2016. There are 77,950 shares of common stock outstanding.
1. Using the multiple-step form, prepare an income statement for the year ended June 30, 2017.
2. Prepare a retained earnings statement for the year ended June 30, 2017.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started