The following selected accounts from Kai Corporation’s general ledger are presented below for the year ended December 31, 2021:

Instructions

a. Prepare a single-step statement of income.

b. Prepare a multiple-step statement of income.

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Accounts payable Accounts receivable Accumulated depreciation- equipment Cash Common shares Cost of goods sold Depreciation expense $ 98,000 148,000 573,000 12,000 300,000 1,925,000 278,000 Equipment Income tax expense Insurance expense Inventory Prepaid expenses Retained earnings Salaries expense Sales $1,664,000 132,000 128,000 374,000 45,000 676,000 921,000 3,980,000