189 Chapter 4 Accounting for Retail Operations P4-4 Multiple-step income statement and report form of balance sheet Ob).7 The following selected accounts and their current balances appear in the ledger of Prescott 1. Net Income Inc. for the fiscal year ended September 30, 2018: $1,550,000 Cash $ 167.000 Retained Earnings $ 507.000 Accounts Receivable 300,000 Dividends 250.000 Inventory 735.000 Sales 7.134,000 Estimated Returns Inventory 25,000 Cost of Goods Sold 4,350,000 Office Supplies 30,000 Sales Salaries Expense 777,600 Prepaid Insurance 91,800 24,000 Advertising Expense Office Equipment 230,400 Depreciation Expense- Accumulated Depreciation- Store Equipment 16,600 Office Equipment 4.000 99,000 Miscellaneous Selling Expense Store Equipment 154,800 1,023,000 Office Salaries Expense Accumulated Depreciation- Rent Expense 79,800 Store Equipment 373,400 Insurance Expense 45,900 Accounts Payable 67,000 Depreciation Expense- 32 400 Customer Refunds Payable 30,200 Office Equipment 3,300 Salaries Payable 19,200 Office Supplies Expense Note Payable Miscellaneous Administrative 3,800 (final payment due in five years) 108,000 Expense 24,000 Common Stock 30,000 Interest Expense Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year, 3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,000. 4. Briefly explain how multiple-step and single-step income statements differ