In: Accounting
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 | 99,900 |
Sales | 11,403,800 |
Cost of goods sold | 7,842,100 |
Sales salaries expense | 923,100 |
Advertising expense | 540,500 |
Depreciation expense-store equipment | 134,900 |
Miscellaneous selling expense | 37,800 |
Office salaries expense | 664,400 |
Rent expense | 101,000 |
Depreciation expense-office equipment | 45,900 |
Insurance expense | 42,700 |
Office supplies expense | 31,800 |
Miscellaneous administrative expense | 7,100 |
Interest expense | 11,800 |
Required: | |
1. | Prepare a multiple-step income statement. Be sure to complete the statement heading. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
2. | Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
3. | Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. Be sure to complete the statement heading. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
1. Income statement of Clairemont Co.
for the month of May31,20Y2
Sale | $11,403,800 |
- Cost of goods sold | $7,842,100 |
Gross margin | $3,561,700 |
Less : Selling and Adminstrative expense | |
- Sales salaries expense | $923,100 |
- Advertising expense | $540,500 |
- Depreciation expense-store equipment | $134,900 |
- Miscellaneous selling expense | $37,800 |
- Office salaries expense | $664,400 |
- Rent expense | $101,000 |
- Depreciation expense-office equipment | $ 45,900 |
- Insurance expense | $42,700 |
-Office supplies expense | $31,800 |
-Miscellaneous administrative expense | $7,100 |
- Interest expense | $11,800 |
Net margine |
$1,020,700 |
Statement of Retained Earnings
Retained earnings as on 31st May 20Y2 | 2,786,300 |
+ Net Margine of the year | 1,020,700 |
- Dividend declared and paid | 99,900 |
Total Retained earning | $3,707,100 |
2. Statement of
stockholder's Equity
Clairemont Co. year ended May 31,
20Y2:
Common stock | $501,600 |
+ additional capital issued during the year end 31st May 20Y2 | 75,000 |
+ Retained Earnings | 3,707,100 |
Total stockholder's equity | $4,283,700 |
3. Balance sheet for Clairemont Co.
for the fiscal year ended May 31, 20Y2:
Assets | Amount $ | Amount $ |
Fixed assets | ||
Office equipment | 827,000 | |
Less: Accumulated depreciation-office equipment | 556,000 | |
271,000 | ||
Store equipment | 3,594,800 | |
Less :Accumulated depreciation-store equipment | 1,827,100 | |
1,767.700 | ||
Total Fixed Assets | 2,038,700 | |
Current Asssts | ||
Cash (232,700 + 75,000 cash from common stock) | $312,200 | |
Accounts receivable | 957,000 | |
Inventory | 1,668,600 | |
Estimated returns inventory | 21,300 | |
Office supplies | 15,600 | |
Prepaid insurance | 18,000 | |
Total current assets | 2,988,200 | |
Total Assets | 5,026,900 | |
Liabilites | ||
Owner Equity | 576,600 | |
+ Retained Earnings | 3,707,100 | |
Total Owner's Equity | 4,283,700 | |
Current Liabililies | ||
Accounts payable | 361,900 | |
Customer refunds payable | 43,400 | |
Salaries payable | 41,900 | |
Note payable | 75,000 | 522,200 |
Long Term liabilities | ||
Note payable (final payment due in 6 years) | 221,000 | 221,000 |
Total Liabilities and Owner Equity | 5,026,900 |