1. The selected accounts and balances for Cisco Markets as of December 31, 2021 appear as follows: Administrative Expenses James Lines, Capital James Lines, Withdrawals Freight-In Merchandise Inventory Jan. 1, 2021 Merchandise Inventory Dec 31, 2021 Purchases Purchases Returns and Allowances Selling Expenses Sales Sales Returns and Allowances $ 14,000 140,000 21,000 7,000 70,000 56,000 60,000 4,000 41,000 169,000 19,000 REQUIRED: Prepare a multi-step income statement to report the GROSS MARGIN for the year ended December 31, 2021. [17 points]

1. The selected accounts and balances for Cisco Markets as of December 31, 2021 appear as follows: REQUIRED: Prepare a multi-step income statement to report the GROSS MARGIN for the year ended December 31, 2021. [17 points] 2. The following information is available for Melita Company: a. Cash on the books as of June 30, 2022 amounted to $4,098.00. Cash on the bank statement for the same date was $7,735.00. b. Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724 c. A deposit of $425, representing cash receipts o June 30 did not appear on the bank statement. d. The bank service charge for June amounted to $35.00 e. The bank collected $2,475.00 for Melita Company on a note. The face value of the note was $2,400.00 f. An NSF check for $256 from a customer, Indigo, was returned with the statement. g. Outstanding checks totaled $1,860. REQUIRED: (1) Prepare a bank reconciliation for Melita Company as of June 30, 2022 (2) Prepare the necessary journal entries from the reconciliation. [11.25 points]