The following selected accounts and their current balances appear in the ledger of Black Lab Co. for the fiscal year ended April 30, 2012:

Instructions1. Prepare a multiple-step income statement2. Prepare a retained earnings statement.3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $7,000.4. Briefly explain (a) how multiple-step and single-step income statement differ and (b) how report-form and account-form balance sheetsdiffer.

$ 47,000 Cash Sales $3,150.000 Sales Returns and Ailowances Accounts Receivable 150,000 40,030 Sales Discounts 15.000 Merchandise Inventary 180,000 Cost of Merchandise Sold Office Supplies 5,000 1,855.000 12,000 Prepaid Insurance Sales Salaries Expense 400.000 Office Equipment 120,000 Advertising Expense 120.000 Accumulated Depreciation- Depreciation Expense- Store Equipment Miscellaneous Seling Expense Office Equipment 28,000 15,000 Store Equipment Accumulated Depreciation- 50,000 18.000 240,000 Office Salaries Expeme Store Equipment Accounts Payable 38.000 87,500 Rent Expense 48,500 insurance Expense 24.000 Salaries Payable 4,000 Depreciation Expense- Office Equipment Note Payable 7,000 (final payment due 2032) Capital Stock Retained Earnings Ofhce Supplies Expense Miscelaneous Administrative Exp. 140,000 4,000 125,000 6.000 261,000 tnterest Expense 8.000 45,000 Dividends