the following selected accounts and their current balances appear in the ledger of h 665808

The following selected accounts and their current balances appear in the ledger of Hobbs’ Co. for the fiscal year ended June 30, 2008:

Cash	$ 68,850	Sales Returns and Allowances	$ 18,900
Accounts Receivable	55,800	Sales Discounts	9,900
Merchandise Inventory	90,000	Cost of Merchandise Sold	963,000
Office Supplies	2,340	Sales Salaries Expense	189,000
Prepaid Insurance	6,120	Advertising Expense	25,470
Office Equipment	57,600	Depreciation Expense—
Accumulated Depreciation—		Store Equipment	4,140
Office Equipment	9,720	Miscellaneous Selling Expense	990
Store Equipment	105,750	Office Salaries Expense	36,900
Accumulated Depreciation—		Rent Expense	19,935
Store Equipment	43,740	Insurance Expense	11,475
Accounts Payable	24,300	Depreciation Expense—
Salaries Payable	1,800	Office Equipment	8,100
Note Payable		Office Supplies Expense	810
(final payment due 2018)	27,000	Miscellaneous Administrative
Jeremiah Hobbs, Capital	241,200	Expense	1,080
Jeremiah Hobbs, Drawing	22,500	Interest Expense	900
Sales	1,351,800

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 sheets differ.