The following is a partial listing of the accounts for Clark Company for the year ended December 31, 2020, in alphabetical order. (Click the icon to view the partial listing of accounts.) (Click the icon to view the facts.) Required Requirement a. Prepare, in good form, a multi-step income statement that includes relevant subtotals, with operating expenses listed by their function, for the year ended December 31, 2020. Note that depreciation expense, employee wages and benefits, and utilities expense are included in marketing and advertising expenses. (Use parentheses or a minus sign for numbers to be subtracted.) Clark Company Income Statement For the year ended December 31, 2020 $ Sales Gross profit Income before income taxes Income tax expense Income from continuing operations Loss from discontinued operations Net income 4,663,000 Requirement b. Prepare, in good form, a statement of changes in equity for the year ended December 31, 2020. (Use parentheses or a minus sign for numbers to be subtracted. Leave any unused cells blank.) Clark Company Statement of changes in equity For the year ended December 31, 2020 Common Retained shares earnings Balance, January 1, 2020, as originally reported Effect of change in accounting policy Balance, January 1, 2020, restated Net income Dividends declared Shares issued Balance, December 31, 2020 1 Facts During the year, the company issued shares for proceeds of $420,000. In addition, the company had a change in depreciation policy that required a retroactive adjustment which increased the prior year's depreciation expense by $61,000. Clark pays income tax at the rate of 40%. Assume that all of the above items except for retained earnings are before tax. Partial listing of accounts Common shares Cost of goods sold Depreciation expense Dividends declared Employee wages and benefits Loss from discontinued operations before tax Marketing and advertising expenses Retained earnings, January 1, 2020 Sales Utilities expense Dr. (Cr.) $ (2,200,000) 3,777,000 82,000 135,000 955,000 106,000 644,000 (442,000) (4,663,000) 314,000