Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2018. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the "normal" balance for that account. (Hint: The "normal" balance is the same as the debit or credit side that increases the account.) Accounts payable $ 13,450 Accounts receivable 2,700 Accumulated depreciation: office equipment 12,100 Additional paid-in capital (common stock) 7,300 Bonds payable (due December 31, 2021) 23,400 Cash 14,400 Common stock (2,600 shares, $10 par value) 26,000 Cost of goods sold 109,000 Deferred income taxes 6,150 Depreciation expense: office equipment 2,600 Dividends declared 4,400 Income tax expense 7,990 Insurance expense 830 Land 39,200 Merchandise inventory 20,300 Notes payable (due December 31, 2019) 2,600 Office equipment 42,300 Office supplies 840 Office supplies expense 470 Preferred stock (300 shares, $20 par value) 6,000 Premium on bonds payable 2,100 Prepaid rent 1,200 Rent expense 5,800 Retained earnings (January 2018) 21,300 Salaries expense 87,620 Sales 226,500 Sales returns and allowances 1,900 Sales taxes payable 3,200 Treasury stock (400 common shares at cost) 4,500 Utilities expense 4,050 b. Prepare a statement of retained earnings for the year ending December 31, 2018.