Union Corporation's capital structure consists of 100,000 shares of common stock. The CEO has just learnt that you are a graduate of the University of the West Indies with a BSc in Accounting. He has engaged you to prepare the accounts for the company for the year ended December 31, 2018 from the following information: ACCOUNT Sales Sales returns and allowances Purchase discounts Purchases Earthquake loss (net of tax) (extraordinary item) Selling expenses Cash Accounts receivable Common stock Accumulated depreciation Rent revenue Inventory, January 1, 2018 Inventory, December 31, 2018 Unearned service revenue $ 1,395,650 116,340 24,500 668,718 40,000 160,410 96,205 80,000 255,500 180,000 26,000 185,250 158,000 4,400 375,555 Land Sales discount 34,000 Patent 170,000 Retained earnings, January 1, 2018 280,100 Interest expense 27,900 Administrative expenses Common stock dividends declared 228,482 25,000 22.000 31, 2018 Unearned service revenue 158,000 4,400 Land 375,555 Sales discount 34,000 Patent 170,000 Retained earnings, January 1, 2018 280,100 Interest expense 27,900 Administrative expenses Common stock dividends declared Gain on sale of land 228,482 25,000 22,000 Allowance for doubtful accounts 5,000 Preferred stock dividends declared 40,000 Notes payable (maturity 7/1/2021) 200,000 Machinery and equipment 450,000 Depreciation overstatement due to error-2016 15,200 Loss due to a flood damage 15,000 Accounts payable 57,000 The amount of income taxes applicable to ordinary income was $44,100, excluding the tax effect of the earthquake loss which amounted to $15,000. All accounts have normal debit and credit balances. Required a) Prepare a multiple-step income statement in good format at December 31, 2018. [20 Marks] b) Prepare a retained earnings statement for the year ended December 31, 2018. [5 Marks] Union Corporation's capital structure consists of 100,000 shares of common stock. The has just learnt that you are a graduate of the University of the West Indies with a Accounting. He has engaged you to prepare the accounts for the company for the year December 31, 2018 from the following information: ACCOUNT $ Sales 1,395,650 Sales returns and allowances 116,340 Purchase discounts 24,500 Purchases 668,718 Earthquake loss (net of tax) (extraordinary item) 40,000 Selling expenses 160,410 Cash 96,205 Accounts receivable 80,000 Common stock 255,500 Accumulated depreciation 180,000 Rent revenue 26,000 Inventory, January 1, 2018 185,250 Inventory, December 31, 2018 158,000 Unearned service revenue 4,400 Land 375,555 Sales discount 34,000 Patent 170,000 Retained earnings, January 1, 2018 280,100 Interest expense 27,900 Administrative expenses 228,482 Common stock dividends declared 25,000 Gain on sale of land 22,000 Allowance for doubtful accounts 5,000 Preferred stock dividends declared 40,000 Notes payable (maturity 7/1/2021) 200,000 Machinery and equipment 450,000 Depreciation overstatement due to error-2016 15.200 Loss due to a flood damage 15,000 Accounts payable 57,000 The amount of income taxes applicable to ordinary income was $44,100, excludin effect of the earthquake loss which amounted to $15,000. All accounts have normal credit balances. Required a) Prepare a multiple-step income statement in good format at December 31, 201 b) [2 Prepare a retained earnings statement for the year ended December 31, 2018 T