Instructions PROBLEM 1-INCOME STATEMENT PERTINENT ACCOUNTS GATHERED FROM THE RECORDS OF RONE CORPORATION FOR 2020 ARE GIVEN BELOW. PREPARE AN INCOME STATEMENT FOR THE YEAR 2020 WITH COMMON SHARES OUTSTANDING TOTALING 5,000 SHARES. PURCHASE PURCHASE RETURNS AND ALLOWANCES RENTAL INCOME 105,000 3,000 5,000 SELLING EXPENSES FREIGHT OUT SALESMEN'S COMMISSION DEPRECIATION-STORE EQUIPMENT 3,500 13,000 2,500 MERCHANDISE INVENTORY, JANUARY 1 20,000 MERCHANDISE INVENTORY, DECEMBER 31 30,000 SALES 153,000 SALES RETURNS AND ALLOWANCES 2,800 SALES DISCOUNTS 200 ADMINISTRATIVE EXPENSES: OFFICERS' SALARIES 10,000 DEPRECIATION-OFFICE EQUIPMENT 6,000 FREIGHT IN 10,000 INCOME TAX 5,000 INTEREST EXPENSE ON BONDS PAYABLE 1,000 PURCHASE DISCOUNTS 2,000 REQUIRED: INCOME STATEMENT FOR THE YEAR 2020 USING THE MULTIPLE-STEP FORM. COMMON SHARES OUTSTANDING FOR 2016 TOTALED 5,000 SHARES.