The following account balances were included in the trial balance of Twain Corporation at June 30, 2014.

Sales revenue		$1,585,700		Depreciation expense (office furniture and equipment)		$7,282
Sales discounts		32,520		Property tax expense		7,411
Cost of goods sold		905,100		Bad debt expense (selling)		4,934
Salaries and wages expense (sales)		56,360		Maintenance and repairs expense (administration)		9,225
Sales commissions		98,990		Office expense		6,072
Travel expense (salespersons)		34,300		Sales returns and allowances		63,180
Delivery expense		23,210		Dividends received		38,500
Entertainment expense		15,099		Interest expense		19,000
Telephone and Internet expense (sales)		9,163		Income tax expense		107,600
Depreciation expense (sales equipment)		5,069		Depreciation understatement due to error2011 (net of tax)		18,800
Maintenance and repairs expense (sales)		6,252		Dividends declared on preferred stock		9,870
Miscellaneous selling expenses		4,755		Dividends declared on common stock		38,100
Office supplies used		3,471
Telephone and Internet expense (administration)		2,858

The Retained Earnings account had a balance of $339,700 at July 1, 2013. There are 79,600 shares of common stock outstanding.

a. Using the multiple-step form, prepare an income statement and a retained earnings statement for the year ended June 30, 2014. (List items that increase retained earnings first. Round earnings per share to 2 decimal places, e.g. 1.48.)