Olson Company’s bookkeeper prepared the following income statement and retained earnings statement for the year ended December 31, 2019:

The preceding account balances are correct but have been incorrectly classified in certain instances. Assume the income tax amounts are correct and linked to the appropriate items.

Required:
Prepare a corrected 2019 multiple-step income statement and a retained earnings statement. Before preparing the 2019 retained earnings statement, determine the correct balance as of the beginning of the year.

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December 31, 2019 Expense and Profits Statement Sales (net) Less: Selling expenses $ 196,000 (19,600) $ 176,400 2,300 3,200 $ 181,900 Net sales Add: Interest revenue Add: Gain on sale of equipment Gross sales revenues Less: Costs of operations: Cost of goods sold Correction of overstatement in last year's income because of error (net of $1,650 income tax credit) Dividend costs ($0.50 per share for 8,000 common shares) Unusual loss because of earthquake (net of $1,800 income tax credit) Taxable revenues Less: Income tax on income from continuing operations $120,100 3,850 4,000 4,200 (132,150) $ 49,750 (12,480) $ 37,270 Net income Miscellaneous deductions $ 2,100 16,800 Loss from operations of discontinued Division L (net of $900 income tax credit) Administrative expenses (18,900) $ 18,370 Net revenues Retained Revenues Statement For Year Ended December 31, 2019 Beginning retained earnings Add: Gain on sale of Division L (net of $1,350 income taxes) Recalculated retained earnings Add: Net revenues $59,300 3,150 $62,450 18,370 $80,820 (3,400) $77,420 Less: Interest expense Ending retained earnings