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.