Multiple$-$Step Income Statement and Report Form $of$ Balance Sheet

The following selected accounts and their current balances appear $in$ the ledger $of$ Prescott Inc. for the fiscal year ended September $30,20Y8$:

Line Item Description Amount

Cash $$187,875$

Accounts Receivable $337,500$

Inventory $850,500$

Estimated Returns Inventory $78,750$

Office Supplies $33,750$

Prepaid Insurance $27,000$

Office Equipment $259,200$

Accumulated Depreciation$-$ Office Equipment $111,375$

Store Equipment $1,150,875$

Accumulated Depreciation$-$ Store Equipment $420,075$

Accounts Payable $65,610$

Customer Refunds Payable $78,750$

Estimated Coupons Payable $43,740$

Salaries Payable $21,600$

Note Payable $(due$ evenly over next five years$)117,000$

Common Stock $33,750$

Retained Earnings $(asof$ Sept. $30,20Y7)571,050$

Dividends $281,250$

Sales $8,025,750$

Cost $of$ Goods Sold $4,893,750$

Sales Salaries Expense $874,800$

Advertising Expense $103,275$

Depreciation Expense$-$ Store Equipment $18,675$

Miscellaneous Selling Expense $4,500$

Office Salaries Expense $174,150$

Rent Expense $89,775$

Insurance Expense $51,638$

Depreciation Expense$-$ Office Equipment $36,450$

Office Supplies Expense $3,712$

Miscellaneous Administrative $4,275$

Interest Expense $27,000$