Problem 4-47 L04, L05, LOG SPREADSHEET Income and Retained Earnings Statements Selected account balances of Connell Company for 2013 along with additional informa- tion as of December 31 are as follows: Bad Debt Expense.. Delivery Expense. Depreciation Expense-Delivery Trucks Depreciation Expense-Office Building Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Dividend Revenue Dividends Employee Pension Expense. Freight in Gain on Sale of Office Equipment Income Taxes. 2013. Interest Revenue. Inventory, January 1, 2013 $ 32,000 425,000 29,000 25,000 10,000 25,000 35,000 165,000 190,000 145,000 8,000 427,425 10,000 Loss on Sale of Investment Securities Loss on White-Down of Obsolete Inventory Miscellaneous General Expenses Miscellaneous Selling Expenses Officers and Office Salaries Property Taxes Expense.. Purchase Discounts Purchases Retained Earnings, January 1, 2013. Sales Sales Discounts Sales Retums and Allowances. Sales Salaries 775,000 20,000 75,000 45,000 50,000 $550,000 100,000 47,700 4,633,200 550,000 8,125,000 55,000 95,000 521,000 (a) Inventory was valued at year-end as follows: Cost White-down of obsolete inventory (b) Number of Connell shares of stock outstanding: 60,000 Instructions: $825,000 75,000 $750,000 Prepare a multiple step income statement and statement of retained earnings for the year ended December 31, 2013.