The following selected accounts and their current balances appear in the ledger of Magic

Vinyl Co. for the fiscal year ended March 31, 2008:

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $9,000.
4. Briefly explain
(a) How multiple-step and single-step income statements differ and
(b) How report-form and account-form balance sheetsdiffer.

Transcribed Image Text:

Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Note Payable Office Supplies Expense Miscellaneous Administrative (final payment due 2018) Tiffany Garland, Capital Tiffany Garland, Drawing