The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012:

Instructions1. 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 sheets differ.

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Cash $274,000 Sales $6,155,000 Accounts Receivable 425,000 Sales Returns and Allowances 70,000 Merchandise Inventory Office Supplies 525,000 Sales Discounts 55,000 12,000 Cost of Merchandise Sold 3,600,000 Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment 9,000 Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 925,000 315,000 150,000 187,000 35,000 Store Equipment Accumulated Depreciation- 900,000 40,000 315,000 Store Equipment Accounts Payable 293,000 Rent Expense Depreciation Expense- Office Equipment 115,000 193,000 Salaries Payable 12,000 22,000 Note Payable Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. 18,000 (final payment due 2037) Capital Stock Retained Earnings Dividends 400,000 9,000 250,000 11,000 500,000 Interest Expense 15,000 150,000