Marin Corporation's balance sheet at December 31, 2024, is presented below. Cash Inventory Prepaid insurance Equipment 1 1 2 3. 5. 6. 7. 8. 2. 9. 10. 11 3. Adjustment data Marin Corporation Balance Sheet December 31, 2024 During 2025, the following transactions occurred. Marin uses a perpetual inventory system. $66,000 Accounts payable Interest payable Bonds payable 67,650 12,320 83,600 $229,570 Common stock Retained earnings $30,250 I 5,500 110,000 55,000 $28,820 $229,570 Marin paid $5,500 interest on the bonds on January 1, 2025. Marin purchased $530,420 of inventory on account. Marin sold for $1,056,000 cash inventory which cost $580,800. Marin also collected $63,360 sales taxes. Marin paid $506,000 on accounts payable. Marin paid $5,500 interest on the bonds on July 1, 2025. The prepaid insurance ($12,320) expired on July 31. On August 1, Marin paid $22,440 for insurance coverage from August 1, 2025, through July 31, 2026. Marin paid $37,400 sales taxes to the state. Paid other operating expenses, $200,200. Redeemed the bonds on December 31, 2025, by paying $105,600 plus $5,500 interest. Issued $198,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $6,700 salvage value. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) SARUBEN

Drnoare an income itatement for this vear ending Decamber 31 . 2035 (To record interest expense) Eands Payale Giln on Bond Redernpelon 4400 (To record retirement of bonds) 11. Cash Premlum on Eonds Porable Bondis Payable Adj. 1. Inaurance Deperse 9350 Prepald ineurance Ad). 2. Depredation Expense 15304 105600 . Accumulazed Depredation-Equlpment. Ad). 3. Income Tax Bepenet 69404 income Tous Payble 69404 No. Account Titles and Explanation 1. ineterphate sinh 2. Aceounts raside 3. Cith Soleriencen Siles Tamen Porstele [To record silesievenue) Contorctadtsolt lemetory - (To record cost of eoods sold) 4. Accoume Pratly 5. Inturestoperiet 6. ineractepente Prepold wivinos 11. Solet tomespelit cint 9. Oun Optradins Bipertine cins 10. Ineerent Bopench ain Debit: Marin Corporation's balance iheet at December 31, 2024, is presented below. During 2025, the following transactions occurred. Marin uses a perpetual inventory system. 1. Marin paid $5,500 interest on the bonds on January 1.2025. 2 Marin purchased 5530,420 of imventory on acceunt. 3. Marin sold for $1.056,000 cash imventory which cost $580.800. Marin also collected $63380 males twuts. 4. Marin paid 5506,000 on accounts payable. 5. Marin paid S5 500 interest on the bonds on futy 1, 2025: 6. The prepald insurance (512,320) opired on July 31 7 On Augut 1, Marin paid \$22, 440 for insurance coverage from Auguat 1, 2023, theough July 31,2026 B. Marin paid $37,400 sales tanes to the state 9. Psid other operating opensex, 5200.200 10. Redeemed the bonds on December 31,2025 , by paying 5105,600 plus 55,500 interest. 31. Adjustment data: 1. Recorded the insurance expired from item 7 2. The equipment wassaqufred on December 34; 2024, and will be depreciated on a straight-line batis over 5 years with a $6,700 salvagevalue. 3. The income tax rate is 30. (Hint Prepare the income statement ip to income before tares and multiply by 30 s to compute the amount) Prepare a retained earnings statement for the year encling December 31, 2025