P$4\mathrm{.}8$ The following account balances were included in the trial balance of Reid Corporation at June $30,2023$:

Sales revenue

$$1,835,050$

Telephone and internet expense $($office$)$

$$2,820$

Cost of goods sold

$1,071,770$

Salaries and wages expense $($sales$)$

$56,260$

Salaries and wages $($office$)$

$7,320$

Sales commission expense

$97,600$

Supplies expense $($sales$)$

$4,850$

Advertising expense $($sales$)$

$28,930$

Repairs and maintenance expense $($office$)$

$9,130$

Freight out

$21,400$

Depreciation understatement due to error$2021($net of tax of $$3,300)$

$17,700$

Entertainment expense $($sales$)$

$14,820$

Telephone and internet expense $($sales$)$

$9,030$

Miscellaneous expense $($office$)$

$6,000$

Depreciation of sales equipment

$4,980$

Dividend revenue

$38,000$

Repairs and maintenance expense $($sales$)$

$6,200$

Interest expense

$18,000$

Income tax expense

$133,000$

Miscellaneous expenses $($sales$)$

$4,715$

Dividends declared on preferred shares

$9,000$

Supplies expense $($office$)$

$3,450$

Depreciation expense on office furniture and equipment

$7,250$

Dividends declared on common shares

$32,000$

During $2023,$ Reid incurred production salary and wage costs of $$710,000,$ consumed raw materials and other production supplies of $$474,670,$ and had an increase in work$-$in$-$process and finished goods inventories of $$112,900.$ The Retained Earnings account had a balance of $$292,000$ at June $30,2023,$ before closing. There are $180,000$ common shares outstanding. Reid has elected to adopt IFRS. $($Hint: Production payroll and materials costs reduced by the increase in ending work$-$in$-$process and finished goods inventories $=$ the cost of goods sold.$)$

Instructions

Prepare an income statement for the year ended June $30,2023,$ using the multiple$-$step format and showing expenses by function.

Prepare the retained earnings portion of the statement of changes in equity for the year ended June $30,2023.$