Multi-step Income Statement From the following accounts, listed in alphabetical order, prepare a multi-step income statement for Karlman Distributors for the year ended December 31. All accounts have normal balances. $560,000 10,000 Cost of goods sold......... Interest expense....... wing, general and administrative expense.... $196,000Sales revenue. . . . . . . . . ... 335,000 Income tax expense....... 5,000 Using the general journal worksheet tab prepare the adjusting journal entries based on the following transactions Transactions 1 Incurred $400 of insurance expense at 12/31 prepaid insurance account was set up in October 2 Incurred $200 of rent expense at 12/31 prepaid rent account was set up in November 3 Used $600 of supplies by 12/31 supplies on hand was set up in July 4 Calculated $800 of depreciation expense 5 Earned $2500 of service revenue at 12/31 unearned service revenue was previously set up 6 Earned interest income of $300 but money has not been received at 12/31 7 Services of $1500 was earned but not received at 12/31 8 Employees earned salaries of $250 but it will not be paid until the following year. Chart of Accounts Account Name Accounts Receivable Supplies on Hand Prepaid Insurance Prepaid Rent Interest Receivable Accumulated Depreciation Salaries Payable Unearned Service Revenue Service Revenue Interest Revenue Salaries Expense Insurance Expense Rent Expense Supplies Expense Depreciation Expense Account Number 103 107 108 112 121 151 206 216 400 418 507 512 515 518 521