Required information Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2021. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the "normal" balance for that account. (Hint: The "normal" balance is the same as the debit or credit side that increases the account.) Accounts payable Accounts receivable Accumulated depreciation: office equipment Additional paid in capital (common stock) Bonds payable (due December 31, 2024) Cash Common stock (1,900 shares, $10 par value) Cost of goods sold Deferred income taxes Depreciation expense: office equipment Dividends declared Income tax expense Insurance expense Land Merchandise inventory Notes payable (due December 31, 2022) Office equipment Office supplies Office supplies expense Preferred stock (280 shares, $20 par value) Premium on bonds payable Prepaid rent Rent expense Retained earnings (January 2021) Salaries expense Sales Sales returns and allowances Sales taxes payable Treasury stock (300 common shares at cost) Utilities expense $ 12,900 3,350 13,000 7,000 22,600 14,900 19,000 101,520 5,950 2,500 4,700 7,740 870 39,400 20,700 3,500 42,100 810 460 5,600 1,950 1,200 5,700 21,150 87,945 226,500 1,600 3,800 3,375 4,080 b. Prepare a statement of retained earnings for the year ending December 31, 2021. Mountain Sports, Inc. Statement of Retained Earnings Utilities expense 4,080 b. Prepare a statement of retained earnings for the year ending December 31, 2021. Mountain Sports, Inc. Statement of Retained Earnings For the Year Ending December 31, 2021 Retained earnings, January 1, 2021 Ending Retained earnings, December 31, 2021