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

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner€™s equity.
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 and
(b) How report-form and account-form balance sheetsdiffer.

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274,000 Sales Returns and Allowances Accounts Receivable Merchandise Inventory Office Supplies Cost of Merchandise Sold Sales Salaries Expense Advertising Expense 315,000 Depreciation Expense Office Equipment Accumulated Depreciation Accounts Payable 187,000 Miscellaneous Selling Expense (final payment due 2037) Maggie Young, Capital Maggie Young, Drawing Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense