Reference no: EM133059628
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 $241,300
Accounts Receivable 975,200
Merchandise Inventory 1,810,700
Office Supplies 22,600
Prepaid Insurance 15,500
Office Equipment 835,700
Accumulated Depreciation-Office Equipment 553,700
Store Equipment 3,590,000
Accumulated Depreciation-Store Equipment 1,826,400
Accounts Payable 368,200
Customer Refunds Payable 48,500
Salaries Payable 44,300
Note Payable* 291,000
Kristina Marble, Capital 3,472,600
Kristina Marble, Drawing 96,900
Sales 11,382,800
Cost of Merchandise Sold 7,845,100
Sales Salaries Expense 921,100
Advertising Expense 543,500
Depreciation Expense-Store Equipment 144,900
Miscellaneous Selling Expense 43,700
Office Salaries Expense 647,800
Rent Expense 102,000
Depreciation Expense-Office Equipment 54,000
Insurance Expense 48,200
Office Supplies Expense 25,800
Miscellaneous Administrative Expense 8,100
Interest Expense 15,400
*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 $44,700.
4. How multiple-step and single-step income statements differ.