The following selected accounts and their current balances appear in the ledger of Magic Vinyl Co. for the fiscal year ended March 31, 2008:

{Instructions}
1. Prepare a multiple-step income statement.
2. Prepare a retained earnings statement.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is \(\$ 9,000\).
4. Briefly explain

(a) how multiple-step and single-step income statements differ and

(b) how report-form and account-form balance sheets differ.obj. 3

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Cash 184,500 Sales $1,542,000 Accounts Receivable 145,200 Sales Returns and Allowances 27,720 Merchandise Inventory 210,000 Sales Discounts 26,280 Office Supplies 6,720 Cost of Merchandise Sold 930,000 Prepaid Insurance 4,080 Sales Salaries Expense 207,840 Office Equipment 102,000 Advertising Expense 52,560 Accumulated Depreciation- Depreciation Expense- Office Equipment 15,360 Store Equipment 7,680 Store Equipment 183,600 Miscellaneous Selling Expense. 1,920 Accumulated Depreciation- Office Salaries Expense 100,980 Store Equipment 41,040 Rent Expense 37,620 Accounts Payable 66,720 Depreciation Expense- Salaries Payable 2,880 Office Equipment 15,240 Note Payable Insurance Expense 4,680 (final payment due 2018) 67,200 Office Supplies Expense 1,560 Capital Stock 75,000 Miscellaneous Administrative Retained Earnings 489,900 Expense 1,920 Dividends 42,000 Interest Expense 6,000