The following account balances were included in the trial balance of W. Corporation at December 31, 2012.

Sales revenue $1,578,500

Depreciation expense (office furniture and equipment)$ 7,250

Sales discounts 31,150

Cost of goods sold 896,770

Property tax expense 7,320

Salaries and wages expense (sales) 56,260

Bad debt expense (selling) 4,850

Sales commissions 97,600

Maintenance and repairs expense (administration) 9,130

Travel expense (salespersons) 28,930

Freight-out 21,400

Office expense 6,000

Entertainment expense 14,820

Sales returns and allowances 62,300

Telephone and Internet expense (sales) 9,030

Dividends received 38,000

Depreciation expense (sales equipment) 4,980

Interest expense 18,000

Maintenance and repairs expense (sales) 6,200

Income tax expense 102,000

Miscellaneous selling expenses 4,715

Depreciation understatement due to error2009 (net of tax) 17,700

Office supplies used 3,450

Telephone and Internet expense (administration) 2,820

Dividends declared on preferred stock 9,000

Dividends declared on common stock 37,000

The Retained Earnings account had a balance of $337,000 at December 31, 2011.

There are 80,000 shares of common stock outstanding.

Prepare a Trial balance.

(a) Using the multiple-step form, prepare an income statement and a retained earnings statement for

the year ended December 31, 2012.

(b) Using the single-step form, prepare an income statement and a retained earnings statement for the

year ended December 31, 2012.