Olson Company€™s bookkeeper prepared the following income statement and retained earnings statement for the year ended December 31, 2016:

Retained Revenues Statement
For Year Ended December 31, 2016
Beginning retained earnings .................$59,300
Add: Gain on sale of Division L (net of $1,350 income taxes) ..... 3,150
Recalculated retained earnings ................$62,450
Add: Net revenues ...................... 18,370
$80,820
Less: Interest expense .................... (3,400)
Ending retained earnings ...................$77,420
The preceding account balances are correct but have been incorrectly classified in certain instances. Assume the income tax amounts are correct and linked to the appropriate items.
Required:
Prepare a corrected 2016 multiple- step income statement and a 2016 retained earnings statement. Before preparing the 2016 retained earnings statement, determine the correct balance as of the beginning of the year.

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December 31, 2016 Expense and Profits Statement Sales (net Less: Selling expenses Net sales Add: Interest revenue Add: Gain on sale of equipment 196,000 176,400 2,300 3,200 3 181,900 Gross sales revenues Less: Costs of operations: Cost of goods sold Correction of overstatement in lastyear's income because of error (net of $1,650 income tax credit) Dividend costs ($0.50 per share for 8,000 common shares) Unusual loss because of earthquake (net of $1,800 income tax credit) $120,100 aw 3,850 4,000 4.200 (132.150 Taxable revenues Less: Income lax on income from coninuing operations $49,750 12,480 Nel income Miscellaneous deductions Loss from operations of discontinued Division L (net of $900 income tox credit $2,100 16,800 Administrative expenses Net revenues