Reference no: EM133011250
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
(final payment due in 10 years) $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 Exp. $17,600
Interest Expense $25,400
Instructions
Problem 1. Prepare a multiple-step income statement.
Problem 2. Prepare a statement of owner's equity.
Problem 3. Prepare a balance sheet, assuming that the current portion of the note payable is $60,600.
Problem 4. Briefly explain how multiple-step and single-step income statements differ.