1. Prepare, in good form, a retained earnings statement.

NEED ASAP

Part I Peanut Corporation is a private corporation using ASPE. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information: Accounts receivable.. $ 102,000 Accrued interest payable. 1,000 Dividend revenue 9,000 Sales .... 600,000 Purchase discounts 9,000 Purchases 360,000 Accounts payable. 30,000 Loss from fire (net of $7,000 tax). 21,000 Selling expenses.... 64,000 Common shares (20,000 issued; no change during 2020). 200,000 Accumulated depreciation ... 90,000 Long-term note payable (due Oct 1, 2024). 100,000 Inventory, Jan 1, 2020. 76,000 Inventory, Dec 31, 2020 62,500 Supplies inventory 40,000 Unearned service revenue 3,000 Land 370,000 Cash 60,000 Franchise 100,000 Retained earnings, Jan 1, 2020 135,000 Interest expense.. 8,500 Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax). (18,000) General and administrative expenses. 80,000 Dividends declared and paid...... 15,000 Allowance for doubtful accounts 5,000 Machinery and equipment 225,000 Unless indicated otherwise, you may assume a 25% income tax rate. General and administrative expenses include depreciation. There are no preferred shares issued