The following selected accounts and their current balances appear in the ledger of Hobbs'

Co. for the fiscal year ended June 30, 2008:

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $2,250.
4. Briefly explain
(a) How multiple-step and single-step income statements differ and
(b) How report-form and account-form balance sheetsdiffer.

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Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Merchandise Sold Sales Salaries Expense Depreciation Expense- Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Accumulated Depreciation- 5 2 Store Equipment Salaries Payable Note Payable Office Equipment Miscellaneous Administrative 2 Jeremiah Hobbs, Capital Jeremiah Hobbs, Drawing Interest Expense