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

	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.

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. Single-Step Income Statement Instructions Income Statement Journal 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 journa. 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 enterec