dowed with me u. WHAT UU WC NHUW DUU SWIISKy from the lact that there was no Retained Earnings balance? E5.10 (LO 4) The following selected accounts from Blue Door Corporation's general ledger are pre- septed below for the year ended December 31, 2021: Accounts receivable $ 265,000 Income tax expense $ 70,000 Accumulated depreciation- Insurance expense 23,000 equipment 764,500 Interest expense 62,000 Advertising expense 55,000 Interest income 30,000 Common shares 250,000 Inventory 97,000 Cost of goods sold 1,172,000 Prepaid expenses 31,000 Deferred revenue 18,000 Refund liability 19.000 Depreciation expense 125,000 Rent income 24,000 Dividends declared 150,000 Retained earnings 535,000 Equipment 1,450,000 Salaries expense 705,000 Freight out 25,000 Sales 2,589,500 Instructions a. Prepare a single-step statement of income. b. Prepare a multiple-step statement of income. c. Are the expenses classified by nature or function in the list of accounts above? Explain