Question

	Windsor Corporation
	Trial Balance
	June 30, 2017
Accounts	Balance
Sales revenue	1,583,270
Sales discounts	31,410
Cost of goods sold	898,200
Salaries and wages expense (sales)	56,480
Sales commissions	98,010
Travel expense (salespersons)	34,800
Delivery expense	22,840
Entertainment expense	15,090
Telephone and Internet expense (sales)	9,070
Depreciation expense (sales equipment)	4,902
Maintenance and repairs expense (sales)	6,085
Miscellaneous selling expenses	4,920
Office supplies used	3,325
Telephone and Internet expense (administration)	2,748
Depreciation expense (office furniture and equipment)	6,832
Property tax expense	7,602
Bad debt expense (selling)	4,608
Maintenance and repairs expense (administration)	9,270
Office expense	6,040
Sales returns and allowances	58,411
Dividends received	41,560
Interest expense	17,500
Income tax expense	109,130
Depreciation understatement due to error—2014 (net of tax)	18,308
Dividends declared on preferred stock	9,790
Dividends declared on common stock	34,320
The Retained Earnings account had a balance of $339,770 at July 1, 2016.
There are 80,550 shares of common stock outstanding.
In the space below, prepare the following statements for the year ended June 30, 2017:
multiple-step income statement, single-step income statement, and statement of retained earnings

Answer 1

Windsor Corporation
Multi Steps Income statement
For the year ended June 30, 2017
Sales revenue	1,583,270
Less: Sales Discounts	31,410
Less: sales return and Allowances	58,411
Net sales		$1,493,449
Less: cost of goods sold		$898,200
Gross profit		$595,249
Less: operating expenses
Selling expenses
Salaries and wages expense (sales)	56480
Sales commissions	98010
Travel expense (salespersons)	34800
Delivery expense	22840
Telephone and Internet expense (sales)	9070
Depreciation expense (sales equipment)	4902
Entertainment expense	15090
Maintenance and repairs expense (sales)	6085
Miscellaneous selling expenses	4920
Bad debt expense (selling)	4608	$256,805
Administrative expenses
Office supplies used	3325
Telephone and Internet expense (administration)	2748
Depreciation expense (office furniture and equipment)	6832
Maintenance and repairs expense (administration)	9270
Office expense	6040
Property tax expense	7602
		$35,817
Total operating expenses		$292,622
Operating income		$302,627
Non-operating income
Interest Expense (Less)	-17,500
Dividends received	41,560
Total non-operating income		$24,060
Income before income tax		$326,687
Income tax expense		$109,130
Net income		$217,557
Less: Dividends declared on preferred stock		$9,790
Income attribute to common stock holders		$207,767
Earnings per share (Income attribute to common stock holders / Number of shares of common stock outstanding)		$2.57935
Earning per share (Rounded)		$2.58

Windsor Corporation
Income statement
For the year ended June 30, 2017
Revenue
Sales revenue	1583270
Dividends received	41560
Total Revenue		1624830
Less: expense
Sales Discounts	31410
sales return and Allowances	58411
cost of goods sold	$898,200
Salaries and wages expense (sales)	56480
Sales commissions	98010
Travel expense (salespersons)	34800
Delivery expense	22840
Telephone and Internet expense (sales)	9070
Depreciation expense (sales equipment)	4902
Entertainment expense	15090
Maintenance and repairs expense (sales)	6085
Miscellaneous selling expenses	4920
Bad debt expense (selling)	4608
Office supplies used	3325
Telephone and Internet expense (administration)	2748
Depreciation expense (office furniture and equipment)	6832
Maintenance and repairs expense (administration)	9270
Office expense	6040
Property tax expense	7602
Interest Expense	17,500
Income tax expense	$109,130
Total expenses		1407273
Net income		217557
Less: Dividends declared on preferred stock		$9,790
Income attribute to common stock holders		$207,767

Statement of retained earnings
Retained Earnings at beginning	339770
Income attribute to common stock holders	$207,767
Less: Dividends declared on common stock	-34,320
Less: Depreciation understatement due to error—2014 (net of tax)	-18,308
Retained Earnings at ending	494909