Requirement 7. Prepare a multi-step income statement and statement of retained earnings for the year ended December 31, 2018. Prepare a classified balance sheet as of December 31, 2018 Assume interest Receivable is a current asset and Interest Payable is a current liability Begin by preparing a multi-step income statement for the year ended December 31, 2018. (Use a minus sign or parentheses to show any "Other Expenses Assure that Bank Expense and Credit Card Expense are considered to be operating expenses) Click the icon to view the adjusted trial balance) Enter Net Appliance-Nantucket Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash 157,376 Petty Cash 270 Accounts Receivable 290,000 Allowance for Bad Debts $ 14,500 Merchandise Inventory 226,000 Office Supplies 170 Prepaid Insurance 2,000 Interest Receivable 4,200 Notes Receivable 210,000 Land 130,000 Building 890,000 Accumulated Depreciation-Building 28,000 Store Fixtures 67,500 Accumulated Depreciation Store Fixtures 4,500 Office Equipment 35,000 Accumulated Depreciation Office Equipment 14,000 Franchise 49,500 Accounts Payable 175.000 Interest Payable 50,000 Notes Payable 500,000 Common Stock 580,000 Dividends 20,000 Sales Revenue 1,880,000 Interest Revenue 13.500 Cost of Goods Sold 819,000 Franchise Fee Expense 94,000 Salaries Expense 130.000 Utilities Expense 12,000 Insurance Expense 2,000 Supplies Expense 1,180 Bad Debt Expense 14,500 Bank Expense 2,090 Credit Card Expense 700 Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense-Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over 28,000 4,500 14,000 5,500 50,000 $ 3,259,500 $ 3,259,500 Total Enter Net Appliance Nantucket Income Statement Year Ended December 31, 2018 Il Net Income (Loss