E$3\mathrm{.}11($LO $1)($Condensed Income Statement$)$ The following are selected ledger accounts of Spock Corporation at December $31,2028.$ Cash $ $185,000$ Salaries and wages expense $($sales$)$ $ $284,000$ Inventory $686,000$ Salaries and wages expense $($office$)346,000$ Sales revenue $4,275,000$ Sales returns and allowances $79,000$ Unearned sales revenue $117,000$ Accounts receivable $142,500$ Cost of goods sold $2,665,000$ Sales commissions $83,000$ Sales discounts $34,000$ Telephone and Internet expense $($sales$)17,000$ Selling expenses $69,000$ Utilities expense $($office$)32,000$ Accounting and legal services $33,000$ Miscellaneous office expenses $8,000$ Insurance expense $($office$)24,000$ Rent revenue $240,000$ Advertising expense $54,000$ Casualty loss $($before tax$)70,000$ Delivery expense $93,000$ Interest expense $176,000$ Depreciation expense $($office equipment$)48,000$ Depreciation expense $($sales equipment$)36,000$ Spock$$s effective tax rate on all items is $20\%.$ The weighted average number of common stock shares outstanding is $90,000$ shares. Instructions Prepare a condensed $2028$ multi$-$step income statement for Spock Corporation. E$3\mathrm{.}12($LO $3)$ Excel $($Retained Earnings Statement$)$ Eddie Zambrano Corporation began oper$-$ ations on January $1,2025.$ During its first $3$ years of operations, Zambrano reported net income and declared dividends as follows. Net Income Dividends Declared $2025$ $ $40,000$ $ $02026125,00050,0002027160,00050,000$ The following information relates to $2028.$ Income before income tax $$240,000$ Prior period adjustment: understatement of $2026$ depreciation expense $($before taxes$)25,000$ Dividends declared $($of this amount, $$25,000$ will be paid on Jan. $15,2029)100,000$ Effective tax rate $20\%$ Instructions a$.$ Prepare a $2028$ retained earnings statement for Eddie Zambrano Corporation. b$.$ Assume Eddie Zambrano Corporation restricted retained earnings in the amount of $$70,000$ on December $31,2028.$ After this action, what would Zambrano report as total retained earnings in its December $31,2028,$ balance sheet?

E$3\mathrm{.}11$ Hints:$$

Supporting computations: $($a$),($b$),($c$),($d$)$

$($a$)$ Net sales:

$$ $$4,275,000$ $$34,000$ $$79,000=$

$($b$)$ Cost of goods sold:

$$ $$535,000+($$$2,786,000+$ $$72,000$ $$27,000$ $$15,000)$ $$686,000=$

$($c$)$ Selling expenses:

$$ $$284,000+$ $$83,000+$ $$69,000+$ $$54,000+$ $$93,000+$ $$36,000+$ $$17,000$

$($d$)$ Administrative expenses: $$

$$$$346,000+$ $$33,000+$ $$24,000+$ $$48,000+$ $$32,000+$ $$8,000$

$------------------$

E$3\mathrm{.}12$ Hints:

Jan $1,2025$ Balance:$$ $$40,000+$ $$125,000+$ $$160,000)($$$50,000+$ $$50,000)$