Problem 1. The following is a partial list of account balances for Waverly Company at December 31, 2021, prior to closing entries: Cash Merchandise Inventory Supplies Building Common Stock Retained Earnings $174,900 194,950 7,100 419,600 800,000 198,500 Dividends 42,000 Sales 980,700 Cost of Goods Sold 698,500 Salaries Expense 72,500 Utilities Expense 19,000 Insurance Expense 7,000 Advertising Expense 17,000 a. After the temporary accounts are closed, what will be the balance of Retained Earnings? b. From the above information, prepare a multistep income statement.