The following selected accounts and their current balances appear in the ledger of Aqua Co. for the fiscal year ended June 30, 2013:

Instruction
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 payable 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 sheetsdiffer.

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Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation 83,500 Sales 150,000 380,000 15,000 12,000 115,200 Sales Returns and Allowances Sales Discounts Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense $3,625,000 37,800 20,200 2,175,000 388,800 45,900 49,500 511,500 Office Equipment Store Equipment Accumulated Depreciation_ Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense 8,300 2,000 77,400 39,900 22,950 Store Equipment Accounts Payable Salaries Payable Note Payable 186,700 48,600 9,600 Depreciation Expense Office Equipment Office Supplies Expense Miscellaneous Administrative 16,200 1,650 (final payment due 2025) Capital Stock Retained Earnings Dividends 54,000 15,000 253,800 125,000 Expense Interest Expense 1,900 12,000