Where an earnings per share calculation is required, please clearly show how you derived your answer. In Problem 4-4, please tie net income into the Statement of Retained Earnings and verify this using audit arrows.

Each exercise and problem should have appropriate arithmetic formulas wherever possible.

P4-4 (LO3,4,5,6) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. $1,578,500 31,150 896,770 56,260 97,600 28,930 21,400 14,820 9,030 4,980 6,200 4,715 3,450 Sales revenue Sales discounts Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs $ 7,250 7,320 4,850 Cost of goods sold Salaries and wages expense (sales) Sales commissionS 9,130 6,000 62,300 38,000 18,000 102,000 Travel expense (salespersons) expense (administration) Office expense Sales returns and allowances Dividends reccived Interest expense Income tax expense Depreciation understatement Delivery expense Entertainment expense Telephone and Internet expense (sales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense due to error-2014 (net of tax) 17,700 Dividends declared on 9,000 37,000 (administration) 2,820 preferred stock Dividends declared on common stock The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding Instructions (a) Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2017 (b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2017