Problemi (20 points) The following account balances were included in the trail balance of J.R. Reid Corporation at June 30, 2007. Sales $2,878,500 Sales discount 41,150 Cost of goods sold 896,770 Sales salaries 56,260 Sales commissions 87,600 Travel expense-salespersons 38,930 Entertainment expense 14,820 Telephone and Internet expense-sales 9,030 Depreciation of sales equipment 4,980 Bond interest expense 13,000 Dividends declared on common stock 35,000 The Retained Earnings account had a balance of $437,000 at July 1, 2006. Instructions a) Prepare an income statement and a retained earnings statement for the year ended June 30, 2007