Scenario for adjusting entries:

Year end is December $31,2022.$ Peyton Baking Company uses the following accounting practices:

Inventory: Periodic, FIFO for both baking and merchandise

Baking supplies: $$27,850$ ending inventory

Equipment: Straight line method used for equipment

Mixing machine: $$5,000$ initial cost, $$500$ salvage value, $3$rd year of use of $7$ total $($ $$642\mathrm{.}86$ per year$)$

Ovens: $$8,000$ initial cost, $$1,000$ salvage value, $3$rd year of use of $7$ total $($ $$1,000$ per year$)$

Other depreciable equipment: $$4,000$ initial cost, $$0$ salvage value, $1$st year of use of $4$ total $($ $$1,000$ per year$)$

Bakery Leasehold Improvements: $$10,000,2$ nd year of use $($ $$2,000$ per year$)$

Trademark for company name: Initial cost, $$2,300,5^{th}$ year of use and has been completely amortized.

Office supplies: Periodic, FIFO. Ending balance is $$250.$

Pay period is every $2$ weeks. Last pay period ended December $27.$

$60$ employees with a daily pay of $$5,700.$ All receive pay through December $31.$

Financing:

$6\%$ interest note payable was made on January $31,2022,$ and is due February $1,2023.$

$5-$year loan was made on June $1,2022.$ Terms are $7\mathrm{.}5\%$ annual rate, interest only until due date.

Insurance: Annual policy covers $12$ months, purchased in February, covering March $2022-$February $2023.$ No monthly adjustments have been made.

With this example can you show how the Retained Earnings Statement is completed?