Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2025.
Sales revenue
$1,578,500
Sales discounts
31,150
Cost of goods sold
896,770
Salaries and wages expense (sales)
56,260
Sales commissions
97,600
Travel expense (salespersons)
28,930
Delivery expense
21,400
Entertainment expense
14,820
Telephone and Internet expense (sales)
9,030
Depreciation expense (sales equipment)
4,980
Maintenance and repairs expense (sales)
6,200
Miscellaneous selling expenses
4,715
Office supplies used
3,450
Telephone and Internet expense (administration)
2,820
Depreciation expense (office furniture and equipment)
$ 7,250
Property tax expense
7,320
Bad debt expense (selling)
4,850
Maintenance and repairs expense (administration)
9,130
Office expense
6,000
Sales returns and allowances
62,300
Dividends revenue
38,000
Interest expense
18,000
Income tax expense
102,000
Depreciation understatement due to error—2022 (net of tax)
17,700
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 July 1, 2024. There are 80,000 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, 2025.