An alphabetical list of Wildhorses Company adjusted accounts at its fiscal year end, August 31, 2021, follows. All accounts have normal balances.

Accounts payable $15,600

Notes payable $42,000

Accumulated depreciationequipment 14,000

Prepaid insurance 575

Accumulated depreciationfurniture 17,500

R. Smistad, capital 65,750

Cash 29,580

R. Smistad, drawings 70,000

Cost of goods sold 271,900

Rent expense 25,000

Depreciation expense 7,100

Salaries expense 50,800

Equipment 35,000

Salaries payable 2,250

Furniture 42,000

Sales 472,000

Insurance expense 3,575

Sales returns and allowances 16,300

Interest expense 2,100

Supplies 950

Interest payable 555

Supplies expense 6,325

Merchandise inventory 71,050

Unearned revenue 2,600

Additional information:

1. Of the notes payable, $6,100 becomes due on February 17, 2022. The balance is due in 2023.

2. On July 18, 2021, R. Smistad invested $4,200 cash in the business. Prepare a multiple-step income statement.