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

Accounts payable

$15,580

Notes payable

$42,000

Accumulated depreciationequipment

14,000

Prepaid insurance

575

Accumulated depreciationfurniture

17,500

R. Smistad, capital

65,750

Cash

25,600

R. Smistad, drawings

78,000

Cost of goods sold

271,700

Rent expense

24,700

Depreciation expense

7,100

Salaries expense

50,600

Equipment

35,000

Salaries payable

2,250

Furniture

42,000

Sales

475,000

Insurance expense

3,575

Sales returns and allowances

16,300Interest expense

2,140

Supplies

950

Interest payable

535

Supplies expense

6,325

Merchandise inventory

70,650

Unearned revenue

2,600

Additional information:

1. Of the notes payable, $6,900becomes due on February 17, 2022. The balance is due in 2023.

2. On July 18, 2021, R. Smistad invested $4,500cash in the business.

Prepare a multiple-step income statement.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Prepare a statement of owner's equity.

The parts of this question must be completed in order. This part will be available when you complete the part above.

The parts of this question must be completed in order. This part will be available when you complete the part above.