The following is an alphabetical list of accounts for the Mack Company:

Accounts payable

Accounts receivable

Accumulated depreciation,

Buildings and office equipment

Accumulated depreciation,

Store and delivery equipment

Administrative salaries

Advertising expense

Allowance for doubtful accounts

Bad debts expense

Bonds payable

Buildings

Cash

Cash dividends declared

Common stock, $10 par

Correction of previous years’ error

Delivery expense

Depreciation expense, buildings and

Office equipment

Depreciation expense, store and

Delivery equipment

Dividend revenue

Dividends payable

Freight on purchases

Fund to retire long-term bonds

Gain on sale of equipment

Gain on sale of Division T

Income tax expense

Insurance expense

Interest expense

Interest payable

Interest revenue

Investment in securities (long-term)

Loss from expropriation

Loss from operations of discontinued Division T

Loss on sale of office equipment

Merchandise inventory, January 1, 2007

Merchandise inventory, December 31, 2007

Miscellaneous office expenses

Miscellaneous sales expenses

Miscellaneous service revenues

Mortgage payable

Office salaries

Office supplies used

Paid-in capital on common stock

Prepaid office supplies

Property tax expense

Purchases

Purchases discounts taken

Purchases returns and allowances

Rent revenue

Retained earnings, January 1, 2007

Salaries payable

Sales

Sales commissions

Sales discounts taken

Sales returns and allowances

Sales salaries

Stock dividends declared

Unearned rent

Unexpired insurance

Unrealized increase in value of

Available-for-sale securities

Utilities expense

Required

Ignoring amounts, select the appropriate accounts of Mack Company and prepare for 2007:

1. A multiple-step income statement with proper subheadings

2. A statement of comprehensive income

3. A retained earnings statement