The following selected accounts from Blue Door Corporation's general ledger are presented below for the yearp ended December 31, 2018: Accounts receivable Accumulated depreciation-equipment Advertising expense Common shares Cost of goods sold Depreciation expense Dividends declared Equipment Freight out Income tax expense Insurance expense Interest expense Interest revenue Inventory Prepaid expenses Rent revenue Retained earnings Salaries expense Sales Sales discounts Sales returns and allowances Unearned revenue s 265,000 783,500 55,000 250,000 1,172,000 125,000 150,000 1,450,000 25,000 70,000 23,000 62,000 30,000 97,000 31,000 24,000 535,000 705,000 2,650,000 19,500 41,000 18,000 Instructions (a) Prepare a single-step income statement. (b) Prepare a multiple-step income statement. (c) Are the expenses classified by nature or function in the list of accounts above? Explain