Items from the accounts of Anarel Distributors at May 31, 2014, follow, listed in alphabetical order. Anarel Distributors uses the perpetual inventory system. For simplicity, the operating expenses are summarized in the General Expenses and the Selling Expenses accounts.

Required
1. Prepare the business's single-step income statement for the year ended May 31, 2014.
2. Prepare the statement of owner's equity for the year ended May 31, 2014.
3. Prepare Anarel Distributors' classified balance sheet in report format at May 31, 2014.

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$ 71,000 Interest Payable.. Accounts Payable. 2,800 2$ Accounts Receivable . 107,500 Interest Revenue.. 600 Inventory, May 31, 2014.. 167,100 Accumulated Amortization- Equipment. 96,900 Notes Payable, Long-Term 114,800 C. Anarel, Capital . C. Anarel, Withdrawals.. Salaries Payable . 167,800 7,200 66,900 Sales Discounts. 26,500 Cash. 19,900 Sales Returns and Allowances. Cost of Goods Sold.. 1,086,900 45,900 Sales Revenue. Equipment. 340,800 1,991,500 Selling Expenses. General Expenses. Interest Expense 206,800 357,200 9,200 33,100 Supplies.. 15,200 Unearned Sales Revenue..