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 

Kristina Marble, Drawing ....... $ 121,200

Accounts Receivable ............... 1,170,600 

Sales ....................................... 13,746,000

Merchandise Inventory .......... 2,075,300 

Cost of Merchandise Sold ...... 9,513,000

Office Supplies .............................. 16,400 

Sales Salaries Expense ............ 1,110,100

Prepaid Insurance ........................... 9,700 

Advertising Expense .................... 666,500

Office Equipment ...................... 1,005,800 

Depreciation Expense ..................... —

Accumulated Depreciation ............. — 

Store Equipment .......................... 169,700

Office Equipment ......................... 666,500 

Miscellaneous Selling Expense ..... 46,100

Store Equipment ....................... 4,362,700 

Office Salaries Expense ............... 787,700

Accumulated Depreciation .............. —

 Rent Expense ................................... 3,900

Store Equipment ....................... 2,205,600 

Depreciation Expense ...................... —

Account payable .......................... 395,100 

Office Equipment .......................... 60,600

Customer Refund Payable ........... 48,500 

Insurance Expense ....................... 58,200

Salaries Payable ............................ 50,300 

Office Supplies Expense .............. 34,100

Note Payable ..................................... — 

Miscellaneous Administrative Exp. ....... 17,600

final payment due in 10 years) ............ 363,600

Interest Expense ...................................... 25,400

Kristina Marble Capital ...................... 4,179,800  

Instructions
1. Prepare a multiple-step income statement.

2. Prepare a statement of owner’s equity.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $60,000.

4. Briefly explain how multiple-step and single-step income statements differ.