P4-1 Multiple-step income statement ad report form of balance sheet

The following selected accounts and their current appear in the ledger of Aqua Co. for the fiscal year ended June 30, 20Y8:

Cash $ 83,500 Sales $3,625,000 OBJ/2

Accts receivable 150,000 Sales returns and allowances 37,800 1. Net Income, $775,000

Merchadise inventory 380,000 Sales discounts 20,200

Office supplies 15,000 cost of merchants sold 2,175,000

Prepaid insurance 12,000 sales salaries expense 388,800

Office equipment 115,200 advertising expense 45,900

Accum. deprec. office equip. 49,500 deprec. expense-store equip. 8,300

Store equipment 511,500 miscellan. selling expense 2,000

Accum. Deprec. store equip. 186,700 office salaries expense 77,400

Accts payable 48,600 rent expense 39,900

Salaries payable 9,600 Deprec. expense office equip. 16,200

Note payable (final payment due in 5 years) 54,000 Office supplies expense 1,650

Capital stock 15,000 miscallaneous administrative expense 1,900

Retained earnings 253,800 interest expense 12,000

Dividends 125,000 insurance expense 22,950

INSTRUCTIONS:

1. Prepare a multiple-step income statement

2. Prepare a retained earnings statement.

3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $8,000.