Problem 4-04 The following account balances were included in the trial balance of Waterway Corporation at June 30, 2020. Sales revenue $1,589,100 Depreciation expense (office furniture and equipment) $7,364 Sales discounts 32,320 Property tax expense 7,162 Cost of goods sold 903,300 Bad debt expense (selling) 5,229 Salaries and wages expense (sales) 57,960 Maintenance and repairs expense (administration) 8,940 Sales commissions 98,100 Office expense 6,140 Travel expense (salespersons) 34,000 Sales returns and allowances 62,236 Delivery expense 23,400 Dividends received 39,100 Entertainment expense 15,050 Interest expense 18,310 Telephone and Internet expense (sales) 9,090 Income tax expense 92,300 Depreciation expense (sales equipment) 5,162 Depreciation understatement due to error-2020 (net of tax) 17,506 Maintenance and repairs expense (sales) 5,990 Dividends declared on preferred stock 9,280 Miscellaneous selling expenses 5,066 Dividends declared on common stock 37,000 Office supplies used 3,460 Telephone and Internet expense (administration) 3,018 The Retained Earnings account had balance of $331,960 at July 1, 2019. There are 82,400 shares of common stock outstanding. Your answer is partially correct. Try again. Using the single-step form, prepare an income statement for the year ended June 30, 2020. (Round earnings per share to 2 decimal places, e.g. 1.48.) WATERWAY CORPORATION Income Statement For the Year Ended June 30, 2020 Revenues Total Revenues Expenses x Total Expenses Income Before Income Tax x Net Income / (Loss) Earnings Per Share Your answer is partially correct. Try again. Prepare a retained earnings statement for the year ended June 30, 2020. (List items that increase adjusted retained earnings first.) WATERWAY CORPORATION Retained Earnings Statement For the Year Ended June 30, 2020 Retained Earnings, July 1, 2019, as Reported 331960 Correction of Depreciation Understatement 17560 Retained Earnings, July 1, 2019, as Adjusted 314400 Add Net Income / (Loss) 224063 539003 Less Dividends Declared on Preferred Stock 9280 Dividends Declared on Common Stock 37000 46280 Retained Earnings, June 30, 2020 492723