Application Problem 3-15B a-d Eric Shehan is a student working on an internship at Mahon Ltd. On December 31, 2020, the company had its year end. Eric's boss brought Accounts Payable Cash Notes Payable Inventory Common Shares Sales Revenue Retained Earnings (at January 1, 2020) Cost of Goods Sold Utilities Expense Interest Revenue Accounts Receivable Interest Expense $216,000 Wages Expense 116,000 Notes Receivable 249,000 Rent Expense 308,000 Dividends Declared 346,000 Supplies 3,437,000 Insurance Expense 1,100,000 Equipment 2,028,000 Accumulated Depreciation, Equipment 85,000 Miscellaneous Expense 8,000 Unearned Revenue 425,000 Advertising Expense 6,000 $357,000 198,000 34,000 178,000 11,000 15,000 1,695,000 158,000 33,000 28,000 53,000 These account amounts are correct, but Eric's boss advised him that the information did not reflect the following information: 1. Accrued interest of $6,000 on the notes receivable. 2. Employees earned $79,000 in bonuses based on achieving sales targets. These are payable on January 10, 2021. 3. Accrued interest on the note payable amounting to $6,000 is due in January 2021. 4. As of December 31, 2020, the supplies still on hand had a cost of $7,000. 5. The insurance expense includes $3,000 in premiums related to coverage for 2021. 6. Depreciation for 2020 is $169,000 on the equipment. 7. The company's board declared additional dividends of $252,000, which are payable to shareholders on January 15, 2021. Prepare a statement of income for the year ended December 31, 2020. Mahon Ltd. Statement of Income Calculate the amount of retained earnings as at December 31, 2020. Ending retained earnings, Dec. 31, 2020