Question

In: Accounting

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:

Cash $ 240,000
Accounts receivable 966,000
Inventory 1,690,000
Estimated returns inventory 22,500
Office supplies 13,500
Prepaid insurance 8,000
Office equipment 830,000
Accumulated depreciation-office equipment 550,000
Store equipment 3,600,000
Accumulated depreciation-store equipment 1,820,000
Accounts payable 326,000
Customer refunds payable 40,000
Salaries payable 41,500
Note payable (final payment due 2024) 300,000
Common stock 500,000
Retained earnings 2,949,100
Dividends 100,000
Sales 11,343,000
Cost of goods sold 7,850,000
Sales salaries expense 916,000
Advertising expense 550,000
Depreciation expense-store equipment 140,000
Miscellaneous selling expense 38,000
Office salaries expense 650,000
Rent expense 94,000
Depreciation expense-office equipment 50,000
Insurance expense 48,000
Office supplies expense 28,100
Miscellaneous administrative expense 14,500
Interest expense 21,000
Required:
1. Prepare a multiple-step income statement. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.*
2. Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.*
3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.*
4. Briefly explain how multiple-step and single-step income statements differ.
* Be sure to complete the statement headings. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required.
Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended May 31, 2018
Long-term liabilities
May 31, 2018
Operating expenses
Other revenue and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Change in retained earnings
Gross profit
Income from operations
Dividends
Net income
Net income for the year
Net loss
Net loss for the year
Note payable (current portion)
Retained earnings, June 1, 2017
Retained earnings, May 31, 2018
Total administrative expenses
Total assets
Total current assets
Total current liabilities
Total liabilities
Total liabilities and stockholders’ equity
Total operating expenses
Total property, plant, and equipment
Total selling expenses
Total stockholders’ equity

Solutions

Expert Solution


Related Solutions

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $108,300 Retained Earnings 477,200 Accounts Receivable 293,800 Dividends 64,800 Inventory 329,100 Sales $3,965,700 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,293,800 Office Supplies 10,200 Sales Salaries Expense 645,000 Prepaid Insurance 7,900 Advertising Expense 177,400 Office Equipment 238,300 Depreciation Expense—    Store Equipment 34,600 Accumulated Depreciation—    Office Equipment 161,900 Miscellaneous Selling Expense 15,100 Store Equipment 743,800 Office...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $241,300 Accounts receivable 975,200 Inventory 1,810,700 Estimated returns inventory 21,000 Office supplies 22,300 Prepaid insurance 11,400 Office equipment 833,700 Accumulated depreciation-office equipment 540,000 Store equipment 3,606,400 Accumulated depreciation-store equipment 1,822,200 Accounts payable 364,600 Customer refunds payable 40,600 Salaries payable 42,700 Note payable (final payment due in 6 years) 317,000 Common stock 495,100 Retained earnings 3,010,700 Dividends...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 245,100 Accounts receivable 971,100 Inventory 1,786,300 Estimated returns inventory 22,200 Office supplies 22,100 Prepaid insurance 7,600 Office equipment 839,400 Accumulated depreciation-office equipment 548,200 Store equipment 3,607,700 Accumulated depreciation-store equipment 1,816,600 Accounts payable 365,900 Customer refunds payable 33,200 Salaries payable 42,500 Note payable (final payment due 2024) 299,000 Common stock 496,400 Retained earnings 3,140,600 Dividends 98,800...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Cash $ 240,000 Accounts Receivable 966,000 Merchandise Inventory 1,690,000 Estimated Returns Inventory 22,500 Office Supplies 13,500 Prepaid Insurance 8,000 Office Equipment 830,000 Accumulated Depreciation-Office Equipment 550,000 Store Equipment 3,600,000 Accumulated Depreciation-Store Equipment 1,820,000 Accounts Payable 326,000 Customer Refunds Payable 40,000 Salaries Payable 41,500 Note Payable (final payment due 2022) 300,000 Kristina Marble, Capital 3,449,100 Kristina Marble, Drawing...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $238,400 Accounts receivable 965,200 Inventory 1,771,300 Estimated returns inventory 21,900 Office supplies 17,900 Prepaid insurance 3,300 Office equipment 821,200 Accumulated depreciation-office equipment 544,100 Store equipment 3,601,000 Accumulated depreciation-store equipment 1,816,900 Accounts payable 364,800 Customer refunds payable 44,100 Salaries payable 37,400 Note payable (final payment due in 6 years) 300,000 Common stock 493,800 Retained earnings 2,999,000 Dividends...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Cash $ 244,200 Accounts Receivable 956,700 Merchandise Inventory 1,612,700 Estimated Returns Inventory 22,500 Office Supplies 16,400 Prepaid Insurance 2,400 Office Equipment 820,100 Accumulated Depreciation-Office Equipment 549,000 Store Equipment 3,602,400 Accumulated Depreciation-Store Equipment 1,826,800 Accounts Payable 363,800 Customer Refunds Payable 22,500 Salaries Payable 45,100 Note Payable (final payment due 2022) 307,000 Kristina Marble, Capital 3,406,900 Kristina Marble, Drawing...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 245,100 Accounts receivable 971,100 Inventory 1,786,300 Estimated returns inventory 22,200 Office supplies 22,100 Prepaid insurance 7,600 Office equipment 839,400 Accumulated depreciation-office equipment 548,200 Store equipment 3,607,700 Accumulated depreciation-store equipment 1,816,600 Accounts payable 365,900 Customer refunds payable 33,200 Salaries payable 42,500 Note payable (final payment due 2024) 299,000 Common stock 496,400 Retained earnings 3,140,600 Dividends 98,800...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Cash $ 240,000 Accounts Receivable 966,000 Merchandise Inventory 1,690,000 Estimated Returns Inventory 22,500 Office Supplies 13,500 Prepaid Insurance 8,000 Office Equipment 830,000 Accumulated Depreciation-Office Equipment 550,000 Store Equipment 3,600,000 Accumulated Depreciation-Store Equipment 1,820,000 Accounts Payable 326,000 Customer Refunds Payable 40,000 Salaries Payable 41,500 Note Payable (final payment due 2022) 300,000 Kristina Marble, Capital 3,449,100 Kristina Marble, Drawing...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT