Question

Instructions:

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	$244,200
Accounts Receivable	956,700
Merchandise Inventory	1,612,700
Office Supplies	16,400
Prepaid Insurance	2,400
Office Equipment	820,100
Accumulated Depreciation-Office Equipment	549,000
Store Equipment	3,602,400
Accumulated Depreciation-Store Equipment	1,826,800
Accounts Payable	363,800
Customer Refunds Payable	48,500
Salaries Payable	45,100
Note Payable*	307,000
Kristina Marble, Capital	3,358,400
Kristina Marble, Drawing	103,300
Sales	11,271,800
Cost of Merchandise Sold	7,851,700
Sales Salaries Expense	914,200
Advertising Expense	541,800
Depreciation Expense-Store Equipment	138,200
Miscellaneous Selling Expense	34,100
Office Salaries Expense	656,600
Rent Expense	86,800
Depreciation Expense-Office Equipment	55,000
Insurance Expense	54,800
Office Supplies Expense	30,700
Miscellaneous Administrative Expense	17,400
Interest Expense	30,900
*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 $53,200.*
4.	How multiple-step and single-step income statements differ.

Labels-

LabelsCurrent assetsCurrent liabilitiesFor the Year Ended May 31, 20Y8Long-term liabilitiesMay 31, 20Y8ExpensesOther revenue and expenseProperty, plant, and equipmentAmount DescriptionsGross profitIncome from operationsIncrease in owner’s equityKristina Marble, capital, June 1, 20Y7Kristina Marble, capital, May 31, 20Y8WithdrawalsNet incomeNet lossTotal administrative expensesTotal assetsTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and owner’s equityTotal operating expensesTotal property, plant, and equipmentTotal selling expenses

Please help on the

1 LabelsCurrent assetsCurrent liabilitiesFor the Year Ended May 31, 20Y8Long-term liabilitiesMay 31, 20Y8ExpensesOther revenue and expenseProperty, plant, and equipmentAmount DescriptionsGross profitIncome from operationsIncrease in owner’s equityKristina Marble, capital, June 1, 20Y7Kristina Marble, capital, May 31, 20Y8WithdrawalsNet incomeNet lossTotal administrative expensesTotal assetsTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and owner’s equityTotal operating expensesTotal property, plant, and equipmentTotal selling expenses

Answer 1