Presented below is the adjusted trial balance of Katies Pet Supplies as at its fiscal year end, June 30, 2017. All accounts are their normal balance (debit or credit). Katies uses the perpetual inventory system.

Accounts payable........................... $ 34,850 K. Milani, Capital..................... $ 50,770

Accounts receivable.......................... 27,300 K. Milani, Drawings.................. 24,000

Accum. depreciation, computers......... 1,500 Long-term note receivable...... 14,000

Accum. depreciation, equipment....... 32,000 Merchandise inventory............ 55,000

Advertising expense............................ 3,200 Note payable, due 2018.......... 47,000

Cash.................................................... 9,500 Prepaid rent............................. 1,500

Computers........................................... 4,500 Rent expense.......................... 14,000

Cost of goods sold........................... 195,000 Salaries expense..................... 46,800

Depreciation Expense......................... 4,000 Salaries payable...................... 6,200

Equipment.......................................... 80,000 Sales discounts....................... 100

Freight-out expense............................. 6,200 Sales returns and allowances. 1,000

Insurance expense.............................. 2,200 Sales revenue.......................... 320,000

Interest expense.................................. 2,350 Supplies................................... 900

Interest payable...................................... 280 Supplies expense.................... 1,750

Interest revenue...................................... 700

Instructions Prepare a multiple-step income statement.