Selected accounts and related amounts for Prescott Inc. for the fiscal year ended September 30, 20Y8, are presented in Problem 4-4.

Instructions

1. Prepare a single-step income statement in the format shown in Exhibit 8.

2. Prepare a statement of stockholders' equity. No common stock was issued during the year.

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167,000 Retained Earnings Accounts Receivable Estimated Returns Inventory Prepaid Insurance Accumulated Depreciation Cost of Goods Sold 0,000 Saes Salaries Expense Advertising Expense Store Equipment Miscellaneous Selling Expense Office Salaries Expense 99,000 Accumulated Depreciation Customer Refunds Payable 9,200 Office Supplies Expense Miscellaneous Administrative (final p yment due in fi e years 108,000 Expense