The following selected accounts and their current balances appear in

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

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

Instructions
1. 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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