87,500 Cost of Goods Sold 37,500 Sales Salaries Expense Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 2018: Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies $208,750 Retained Earnings (as of Sept. 30, 2017) $634,500 375,000 Dividends 945,000 Sales 312,500 8,917,500 5,437,500 972,000 Prepaid Insurance 30,000 Advertising Expense 114,750 Office Equipment 288,000 Depreciation Expense- Store Equipment 20,750 Accumulated Depreciation- Office Equipment 123,750 Miscellaneous Selling Expense 5,000 Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable (due evenly over next 5 years) Common Stock Instructions: 1,278,750 Office Salaries Expense 193,500 466,750 Rent Expense 99,750 121,500 Insurance Expense 57,375 87,500 Depreciation Expense- Office Equipment 40,500 24,000 Office Supplies Expense 4,125 130,000 Miscellaneous Administrative 4,750 37,500 Interest Expense 30,000 Check My Work