The following account balances were included in the trial balance of Twain Corporation at June 30, 2012.

The Retained Earnings account had a balance of $337,000 at July 1, 2011. 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, 2012.(b) Using the single-step form, prepare an income statement and a retained earnings statement for the year ended June 30,2012.

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Depreciation expense (office furniture and equipment) Property tax expense Bad debt expense (selling) Maintenance and repairs expense (administration) Office expense Sales returns and allowances $1.578,500 Sales revenue $ 7,250 Sales discounts 31.150 896,770 7,320 Cost of goods sold Salaries and wages expense (sales) 4,850 56,260 97,600 Sales commissions Travel expense (salespersons) Freight-out Entertainment expense Telephone and Internet expense isales) Depreciation expense (sales equipment) Maintenance and repairs expense (sales) Miscellaneous selling expenses Office supplies used Telephone and Internet expense (administration) 9,130 28,930 6,000 21,400 62,300 14,820 38,000 Dividends received 9,030 Interest expense Income tax expense Depreciation understatement due to error-2009 (net of tax) Dividends declared on preferred stock Dividends declared on common 18.000 4,980 6,200 4.715 3,450 102,000 17,700 9,000 2,820 37,000 stock