The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 2048: $290,800 Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Store Equipment Accumulated Depreciation Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable* Kristina Marble, Capital Kristina Marble, Drawing 1,170,600 2,075,300 16,400 9,700 1,005,800 666,500 4,362,700 2,205,600 395,100 48,500 50,300 363,600 4,179,800 Sales 121,200 13,746,000 9,513,000 1,110,100 666,500 169,700 46,100 787,700 Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense-Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Depreciation Expense-Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Expense Interest Expense 113,900 60,600 58,200 34,100 17,600 25,400 *final payment due in 10 years 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. CNOWjournals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indenta credit entry when a credit amount is entered. CHART OF ACCOUNTS Druid Hills Co. General Ledger REVENUE 410 Sales EXPENSES 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 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 LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Note Payable 219 Sales Tax Payable 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 540 Miscellaneous Selling Expense 541 Miscellaneous Administrative Expense 710 Interest Expense EQUITY 310 Kristina Marble, Capital 311 Kristina Marble, Drawing Labels and Amount Descriptions Labels Expenses For the Year Ended May 31, 2048 May 31, 2018 Amount Descriptions Administrative expenses Net income Net loss Selling expenses Total expenses Income Statement 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 Druid Hills Co. Income Statement (Label) 1 2 (Label) 3 5 6 7 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Closing Entries 2 3 5 7 8 9 10 11 12 13 14 15 16 17