The following items, with expenses condensed to conserve space, appeared in the last four columns of a work sheet prepared for Small Shop, Incorporated, as of December 31, 1990, the end of its annual accounting period. Use this information to prepare a 1990 multiple-step income statement and a retained earnings statement for the corporation.

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Merchandise inventory. Other assets Common stock Income Statement Debit Retained Earnings Statement or Balance Sheet Credit Debit Credit 60,000 48,000 60,000 150,000 Retained earnings. Dividends declared Sales 75,000 107,000 20,000 360,000 Sales returns and allowances Sales discounts. 1,800 3,600 Purchases .. 216,000 Purchases returns and allowances 1,200 Purchases discounts 3,000 Transportation-in 600 Selling expenses 54,000 General and administrative expenses Income taxes expense 42,600 9,600 Net income. 376,200 424,200 230,000 48,000 182,000 48,000 424,200 424,200 230,000 230,000