2. Assignment 1 ACCT 201 9:41 Question 2: (4 Marks) Khaled Corporation's capital structure consists of 50,000 ordinary shares. At December 31, 2022 an analysis of the accounts and discussions with company officials revealed the following information: SAR1,100,000 Sales Purchase discounts 18,000 Purchases 642,000 128,000 Loss on discontinued operations (net of tax) 42,000 Selling expenses Cash 60,000 Accounts receivable 90,000 Share capital 200,000 Accumulated depreciation 180,000 Dividend revenue 8,000 Inventory, January 1, 2011 152,000 Inventory, December 31, 2011 125,000 Unearned service revenue 4,400 Accrued interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2011 290,000 Interest expense 17,000 General and administrative expenses 150,000 Dividends declared 29,000 Allowance for doubtful accounts 5,000 Notes payable 200,000 450,000 Machinery and equipment Materials and supplies 40,000 Accounts payable 60,000 The amount of income taxes applicable to ordinary income was SAR48,600, excluding the tax effect of the discontinued operations loss, which amounted to SAR18,000. Instructions (a) Prepare an income statement. (2 marks) (b) Prepare a retained earnings statement. (2 marks)