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 Accounts Receivable $290,800 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 Note Payable* Kristina Marble, Capital Kristina Marble, Drawing 50,300 363,600 4,179,800 121,200 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 Expense 17,600 Interest Expense 25,400 *final payment due in 10 years Required: 1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. 2. Prepare closing entries as of May 31, 2018. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.