Selected accounts and related amounts for Aqua Co. for the fiscal year ended June 30, 20Y8, are presented in problem 4-1 (see below)

Instructions

1-Prepare a single-set income statement in the format shown in Exhibit 3.

2-Prepare a retained earnings statement.

P4-1 multiple-step income statement and report form of balance sheet

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

Cash $83,500 sales $3,625,000

Accounts receivable 150,000 sales returns and allowances 37,800

Merchandise inventory 380,000 sales discounts 20,200

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

Prepaid insurance 12,000 sales salaries expense 388,800

Office equipment 115,200 adverting expense 45,900

Accumulated depreciation Depreciation Expense

Office equipment 49,500 store equipment 8,300

Store equipment 511,500 Miscellaneous selling expense 2,000

Accumulated depreciation office salaries expense 77,400

Store equipment 186,700 rent expense 39.900

Accounts payable 48,600 insurance expense 22.950

Salaries payable 9,600 depreciation expense

Note payable office equipment 16,200

(Final payment due in five years)54,400 office supplies 1,650

Capital stock 15,000 miscellaneous administrative

Retained earnings 253,800 expense 1,900

Dividends 125,000 interest expense 12,000