Selected accounts and related amounts for Druid Hills Co. for the fiscal year ended May 31, 20Y8, are presented in Problem 6-5A.   Adjunt problem 6-5A Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 12. 2. Prepare closing entries as of May 31, 20Y8.

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Chapter1: Financial Statements And Business Decisions
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Selected accounts and related amounts for Druid Hills Co. for the fiscal year ended May 31, 20Y8, are presented in Problem 6-5A.   Adjunt problem 6-5A

Instructions

1. Prepare a single-step income statement in the format shown in Exhibit 12. 2. Prepare closing entries as of May 31, 20Y8.

PR 6-SA Multiple-step income statement and balance sheet
The following selected accounts and their current balances appear in the ledger of Druid
Hills Co. for the fiscal year ended May 31, 20Y8:
OBJ. 3
$ 290,800
1,170,600
$ 121,200
13,746,000
Cash
Kristina Marble, Drawing
Accounts Receivable
Sales
Merchandise Inventory
Office Supplies
Prepaid Insurance
Office Equipment
Accumulated Depreciation-
2,075,300
Cost of Merchandise Sold
9,513,000
16,400
Sales Salaries Expense
1,110,100
666,500
Advertising Expense
Depreciation Expense-
9,700
1,005,800
Store Equipment
169,700
Office Equipment
Store Equipment
Accumulated Depreciation-
666,500
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
46,100
4,362,700
787,700
113,900
Store Equipment
Accounts Payable
Customer Refunds Payable
Salaries Payable
Note Payable
2,205,600
Depreciation Expense-
Office Equipment
Insurance Expense
395,100
60,600
48,500
58,200
50,300
Office Supplies Expense
Miscellaneous Administrative Exp.
34,100
17,600
(final payment due in 10 years)
Kristina Marble, Capital
363,600
Interest Expense
25,400
4,179,800
(Continued)
6 Accounting for Merchandising Businesses
Instructions
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.
Briefly explain how multiple-step and single-step income statements differ.
Transcribed Image Text:PR 6-SA Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 20Y8: OBJ. 3 $ 290,800 1,170,600 $ 121,200 13,746,000 Cash Kristina Marble, Drawing Accounts Receivable Sales Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- 2,075,300 Cost of Merchandise Sold 9,513,000 16,400 Sales Salaries Expense 1,110,100 666,500 Advertising Expense Depreciation Expense- 9,700 1,005,800 Store Equipment 169,700 Office Equipment Store Equipment Accumulated Depreciation- 666,500 Miscellaneous Selling Expense Office Salaries Expense Rent Expense 46,100 4,362,700 787,700 113,900 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable 2,205,600 Depreciation Expense- Office Equipment Insurance Expense 395,100 60,600 48,500 58,200 50,300 Office Supplies Expense Miscellaneous Administrative Exp. 34,100 17,600 (final payment due in 10 years) Kristina Marble, Capital 363,600 Interest Expense 25,400 4,179,800 (Continued) 6 Accounting for Merchandising Businesses Instructions 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. Briefly explain how multiple-step and single-step income statements differ.
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