Problems P4-1 Multiple-step income statement and report form of balance sheet The following selected accounts and their current balances appear in the ledger of Aqua Co for the fiscal year ended June 30, 20Y8 $ 83,500 $3,625,000 Cash Sales Accounts Receivable Sales Returns and Allowances 150,000 37,800 Merchandise Inventory Office Supplies Sales Discounts 380,000 20,200 Cost of Merchandise Sold 15,000 2,175,000 Prepaid Insurance 12,000 Sales Salaries Expense 388,800 Office Equipment Accumulated Depreciation 115,200 Advertising Expense Depreciation Expense Store Equipment Miscellaneous Selling Expense 45,900 Office Equipment 49,500 8,300 Store Equipment 511,500 2,000 Accumulated Depreciation Office Salaries Expense Rent Expense 77,400 39,900 Store Equipment 186,700 Insurance Expense Accounts Payable 48,600 22,950 Salaries Payable 9,600 Depreciation Expense- Office Equipment Note Payable 16,200 Office Supplies Expense (final payment due in five years) Capital Stock Retained Earnings 54,000 1,650 Miscellaneous Administrative 15,000 Expense Interest Expense 253,800 1,900 Dividends 125,000 12,000 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 pay able is $8,000. 4 Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ