Reference no: EM133066736
Question - The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 20Y8:
Cash $290,800
Accounts Receivable 1,170,600
Merchandise Inventory 2,075,300
Office Supplies 16,400
Prepaid Insurance 9,700
Office Equipment 1,005,800
Accumulated Depreciation-Office Equipment 666,500
Store Equipment 4,362,700
Accumulated Depreciation-Store Equipment 2,205,600
Accounts Payable 395,100
Customer Refunds Payable 48,500
Salaries Payable 50,300
Note Payable* 363,600
Kristina Marble, Capital 4,179,800
Kristina Marble, Drawing 121,200
Sales 13,746,000
Cost of Merchandise Sold 9,513,000
Sales Salaries Expense 1,110,100
Advertising Expense 666,500
Depreciation Expense-Store Equipment 169,700
Miscellaneous Selling Expense 46,100
Office Salaries Expense 787,700
Rent Expense 113,900
Depreciation Expense-Office Equipment 60,600
Insurance Expense 58,200
Office Supplies Expense 34,100
Miscellaneous Administrative Expense 17,600
Interest Expense 25,400
*final payment due in 10 years
Required -
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $60,600.
4. How multiple-step and single-step income statements differ.