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 $290,800 Accounts Receivable 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 50,300 Note Payable 363,600 Kristina Marble, Capital 4,179,800 Kristina Marble, Drawing 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 CHART OF ACCOUNTSDruid Hills Co General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Note Payable 219 Sales Tax Payable EQUITY 310 Kristina Marble, Capital 311 Kristina Marble, Drawing REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense Store Equipment 525 Depreciation Expense Office Equipment 526 Sales Salaries Expense 527 Office Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 540 Miscellaneous Selling Expense 541 Miscellaneous Administrative Expense 710 Interest Expense 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, 20Y8 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 Labels Expenses For the Year Ended May 31, 20Y8 May 31, 20Y8 Amount Descriptions Administrative expenses Net income Net loss Selling expenses Total expenses 2 Prepare closing entries as of May 31, 20Y8 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 x Income Statement 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 (1) will automatically appear if it is required Druid Hills Co Income Statement May 31, 20Y8 1 2 Current assets 3 Cash $290,800 00 4 Accounts receivable 1,170,600 00 5 Inventory Office supplies 2,075,300 00 16,400 00 6 7 Prepaid insurance 8 Total current assets Journal JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT ACCOUNTING FOLATION ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

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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

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	$290,800
Accounts Receivable	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	50,300
Note Payable*	363,600
Kristina Marble, Capital	4,179,800
Kristina Marble, Drawing	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

CHART OF ACCOUNTSDruid Hills Co.General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Note Payable
219	Sales Tax Payable

	EQUITY
310	Kristina Marble, Capital
311	Kristina Marble, Drawing

	REVENUE
410	Sales

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Sales Salaries Expense
527	Office Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
540	Miscellaneous Selling Expense
541	Miscellaneous Administrative Expense
710	Interest Expense

	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, 20Y8. 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.

Labels
Expenses
For the Year Ended May 31, 20Y8
May 31, 20Y8
Amount Descriptions
Administrative expenses
Net income
Net loss
Selling expenses
Total expenses

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2. Prepare closing entries as of May 31, 20Y8. 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.

image text in transcribed

x Income Statement 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 (1) will automatically appear if it is required. Druid Hills Co. Income Statement May 31, 20Y8 1 2 Current assets: 3 Cash $290,800.00 4 Accounts receivable 1,170,600.00 5 Inventory Office supplies 2,075,300.00 16,400.00 6 7 Prepaid insurance 8 Total current assets Journal JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLATION ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17