Savage Corporation at June 30, 2020.

Sales revenue		$1,595,870		Depreciation expense (office furniture and equipment)		$7,119
Sales discounts		33,040		Property tax expense		7,850
Cost of goods sold		897,600		Bad debt expense (selling)		4,614
Salaries and wages expense (sales)		56,520		Maintenance and repairs expense (administration)		8,347
Sales commissions		98,900		Office expense		6,480
Travel expense (salespersons)		35,200		Sales returns and allowances		58,075
Delivery expense		23,290		Dividends received		34,910
Entertainment expense		14,990		Interest expense		18,950
Telephone and Internet expense (sales)		9,160		Income tax expense		107,240
Depreciation expense (sales equipment)		4,914		Depreciation understatement due to error2020 (net of tax)		17,738
Maintenance and repairs expense (sales)		6,715		Dividends declared on preferred stock		9,020
Miscellaneous selling expenses		4,689		Dividends declared on common stock		39,470
Office supplies used		3,656
Telephone and Internet expense (administration)		2,966

The Retained Earnings account had a balance of $370,560 at July 1, 2019. There are 75,830 shares of common stock outstanding.

Using the single-step form, prepare an income statement for the year ended June 30, 2020.

Prepare a retained earnings statement for the year ended June 30, 2020.