The following selected accounts and their current balances appear in the ledger of Gloucester Co. for the fiscal year ended August 31, 2014:

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 payable is $16,000.
4. Briefly explain
(a) How multiple-step and single-step income statements differ
(b) How report-form and account-form balance sheetsdiffer.

Transcribed Image Text:

Accounts Receivable Sales Returns and Allowances 2 Cost of Merchandise Sold Sales Salaries Expense Depreciation Expense- 5 9 Store Equipment Miscellaneous Selling Expense Office Salaries Expense Accumulated Depreciation- Depreciation Expense- Salaries Payable Note Payable 5 Retained Earnings final payment due 2037) Office Supplies Expense Miscellaneous Administrative Exp 8,000