Porter Corporation's capital structure consists of 50,000 shares of common stock.

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6. Income statement and retained earnings statement. Porter Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2014 an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,200,000 Earthquake loss (net of tax) (extraordinaiy item) 56,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 701,000 Accumulated depreciationmachinery 180,000 Dividend revenue 8,000 Uneamed service revenue 4,400 Interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2014 290,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared 24,000 Allowance for doubtll accounts 5,000 Notes payable (maturity W111?) 200,000 Machinery 450,000 Materials 40,000 Accounts payable 60,000 The amount of income taxes applicable to ordinary income was $57,600, excluding the tax effect of the earthquake loss which amounted to $24,000. Instructions (a) Prepare a multiple-step income statement. (b) Prepare a retained earnings statement