.Peanut Corporation is a private corporation using ASPE. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:

Accounts receivable........................................................................................... $102,000

Accrued interest payable.................................................................................... 1,000

Dividend revenue............................................................................................... 9,000

Sales.................................................................................................................... 600,000

Purchase discounts............................................................................................. 9,000

Purchases............................................................................................................ 360,000

Accounts payable............................................................................................... 30,000

Loss from fire (net of $7,000 tax)...................................................................... 21,000

Selling expenses................................................................................................. 64,000

Common shares (20,000 issued; no change during 2020).................................. 200,000

Accumulated depreciation.................................................................................. 90,000

Long-term note payable (due Oct 1, 2024)........................................................ 100,000

Inventory, Jan 1, 2020........................................................................................ 76,000

Inventory, Dec 31, 2020..................................................................................... 62,500

Supplies inventory.............................................................................................. 40,000

Unearned service revenue.................................................................................. 3,000

Land.................................................................................................................... 370,000

Cash.................................................................................................................... 60,000

Franchise............................................................................................................ 100,000

Retained earnings, Jan 1, 2020........................................................................... 135,000

Interest expense.................................................................................................. 8,500

Cumulative effect of change from straight-line to accelerated

depreciation (net of $6,000 tax)......................................................................... (18,000)

General and administrative expenses................................................................. 80,000

Dividends declared and paid.............................................................................. 15,000

Allowance for doubtful accounts....................................................................... 5,000

Machinery and equipment.................................................................................. 225,000

Unless indicated otherwise, you may assume a 25% income tax rate.

General and administrative expenses include depreciation.

There are no preferred shares issued.

Instructions

a., in good form, a multiple-step income statement.

b., in good form, a retained earnings statement.