Income and Retained Earnings Statements Selected account balances of Connell Company for 2015 along with additional information as of Decem- ber 31 are as follows: Bad Debt Expense $ 32,000 Dividend Revenue $ 35,000 Delivery Expense 425,000 Dividends 150,000 Depreciation Expense- Employee Pension Expense 190,000 Delivery Trucks 29,000 Freight-in 145,000 Depreciation Expense- Gain on Sale of Office Equipment 8,000 Office Building 25,000 Income Taxes, 2015 427,425 Depreciation Expense- Interest Revenue 10,000 Office Equipment 10,000 Inventory, January 1, 2015 775,000 Depreciation Expense- Loss on Sale of Investment Store Equipment 25,000 Securities 20,000 Loss on Write-Down of Obsolete Inventory $ 75,000 Purchases $4,633,200 Miscellaneous General Expenses 45,000 Retained Earnings, January 1, 2015 550,000 Miscellaneous Selling Expenses 50,000 Sales 8,125,000 Officers and Office Salaries 550,000 Sales Discounts 55,000 100,000 Property Taxes Expense 95,000 Sales Returns and Allowances Purchase Discounts 47,700 Sales Salaries 521,000 (a) Inventory was valued at year-end as follows: $825,000 Cost... 75,000 Write down of obsolete inventory $750,000 (b) Number of Connell shares of stock outstanding: 60,000 Instructions: Prepare a multiple-step income statement and statement of retained earnings for the year ended December 31, 2015, Income and Retained Earnings Statements Selected account balances of Connell Company for 2015 along with additional information as of Decem- ber 31 are as follows: Bad Debt Expense $ 32,000 Dividend Revenue $ 35,000 Delivery Expense 425,000 Dividends 150,000 Depreciation Expense- Employee Pension Expense 190,000 Delivery Trucks 29,000 Freight-in 145,000 Depreciation Expense- Gain on Sale of Office Equipment 8,000 Office Building 25,000 Income Taxes, 2015 427,425 Depreciation Expense- Interest Revenue 10,000 Office Equipment 10,000 Inventory, January 1, 2015 775,000 Depreciation Expense- Loss on Sale of Investment Store Equipment 25,000 Securities 20,000 Loss on Write-Down of Obsolete Inventory $ 75,000 Purchases $4,633,200 Miscellaneous General Expenses 45,000 Retained Earnings, January 1, 2015 550,000 Miscellaneous Selling Expenses 50,000 Sales 8,125,000 Officers and Office Salaries 550,000 Sales Discounts 55,000 100,000 Property Taxes Expense 95,000 Sales Returns and Allowances Purchase Discounts 47,700 Sales Salaries 521,000 (a) Inventory was valued at year-end as follows: $825,000 Cost... 75,000 Write down of obsolete inventory $750,000 (b) Number of Connell shares of stock outstanding: 60,000 Instructions: Prepare a multiple-step income statement and statement of retained earnings for the year ended December 31, 2015