PROBLEM #1: INCOME STATEMENT & STATEMENT OF RETAINED EARNINGS: Thomasin Pitts Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information:

Sales revenue $1,250,000 Discontinued operations loss before tax 90,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 700,000 Accumulated depreciation-machinery 180,000 Dividend revenue 8,000 Unearned service revenue 4,400 Interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2022 270,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared 24,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/25) 200,000 Machinery 450,000 Supplies 40,000 Accounts payable 60,000

Additonal information: 1. Income tax rate for all transactions is 21% 2. During the year, Pitts discovered an error in the prior year miscalculating inventory. The error created a decrease in net income of $20,000 before tax.

Instructions (a) Prepare a multiple-step income statement in good form. (b) Prepare a retained earnings statement in good form.

Please Respond Using Good form and Spreadsheet format. Thank You so much for your reply