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 $232,700 Accounts Receivable 957,000 Merchandise Inventory 1,668,600 Office Supplies 11,800 Prepaid Insurance 7,100 Office Equipment 827,000 Accumulated Depreciation-Office Equipment 547,000 Store Equipment 3,606,000 Accumulated Depreciation-Store Equipment 1,814,800 Accounts Payable 373,100 Customer Refunds Payable 48,500 Salaries Payable 37,500 Note Payable* 310,000 Kristina Marble, Capital 3,281,300 Kristina Marble, Drawing 107,900 Sales 11,377,100 Cost of Merchandise Sold 7,851,600 Sales Salaries Expense 904,000 Advertising Expense 554,400 Depreciation Expense-Store Equipment 132,100 Miscellaneous Selling Expense 39,000 Office Salaries Expense 654,000 Rent Expense 88,900 Depreciation Expense-Office Equipment 45,000 Insurance Expense 41,000 Office Supplies Expense 35,100 Miscellaneous Administrative Expense 10,400 Interest Expense 15,700 *final payment due in 10 years

Required:

1. Prepare a multiple-step income statement.*

2. Prepare a statement of owners equity.*

3. Prepare a balance sheet, assuming that the current portion of the note payable is $53,700.*

4. How multiple-step and single-step income statements differ.

*Be sure to read the instructions for each financial statement carefully.