From the adjusted trial balance for Brookstone Art Supplies given below, prepare a statement of retained earnings and a balance sheet.

Sales		$325,000
Less: Sales return and allowances	($16,500)
Less: Sales discount	($6,000)	($22,500)
Net Sales		$302,500
Less: Cost of goods sold		($195,000)
Gross profit		$107,500
Less: Operating expense
Selling expense	($32,500)
General and administrative expense	($19,800)	($52,300)
Operating income		$55,200
Other expense and losses
Interest expense		($600)
Net income		$54,600

Brookstone Art Supplies Adjusted Trial Balance December 31 Debit Credit ash ccounts receivable erchandise inventory ffice supplies S9,400 25,000 36,000 900 75,000 Store equipment ccumulated depreciation-store equipment ffice equipment ccumulated depreciation-office equipment ccounts payable otes payable ommon stock etained earnings ividends $ 22,000 60,000 15,000 42,000 10,000 20,000 90,700 48,000 Sales Sales discounts Sales returns and allowances 325,000 6,000 16,500 195,000 32,500 19,800 600 ost of goods sold Selling expenses eneral and administrative expenses nterest expense otals $524.700 $524.700