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 30,20Y8:

Cash $167,000 Retained Earnings $507,600

Acconts Receivable 300,000 Dividends 250,000

Inventory 735,000 Sales 7,134,000

Estimated Returns Inventory 25,000 Cost of Goods Sold 4,350,000

Office Supplies 30,000 Sales Salaries Expense 777,600

Prepaid Insurance 24,000 Advertising Expense 91,800

Office Equipment Accumulated Depreciation 230,400 Depreciation Expense Store Equipment 16,600

Office Equipment 99,000 Miscellaneous Selling Expense 4,000

Store Equipment Accumulated Depreciation 1,023,000 Office Salaries Expense 154,800

Store Equipment 373,400 Rent Expense 79,800

Accounts Payable 67,000 Insurance Expense 45,900

Customer Refunds Payable 30,200 Depreciation Expense Office Equipment 32,400

Salaries Payable 19,200 Office Supplies Expense 3,300

Note Payable (final payment due in five years) 108,000 Miscellaneous Administartive Expense 3,800

Common Stock 30,000 Interest Expense 24,000

.Instructions

1. Prepare a multiple-step income statement

2. Prepare a statement of stockholders equity. No common stock was issued during the year.

3. Prepare a balance sheet, assuming that the current portion of the note payable is 16,000

4. Briefly explain how multiple-step and single-step income statements differ.