Question

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 100,000 Sales 11,343,000 Cost of Merchandise 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 ~~Labels Current assets Current liabilities For the Year Ended May 31, 2019 Long-term liabilities May 31, 2019 Expenses Other expense Property, plant, and equipment ~~Amount Descriptions Gross profit Income from operations Increase in owner’s equity Kristina Marble, capital, June 1, 2018 Kristina Marble, capital, May 31, 2019 Withdrawals Net income Net income for the year Net loss Total administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and owner’s equity Total Expenses Total property, plant, and equipment Total selling expenses ~~1. Prepare a statement of owner’s equity. Enter amounts that represent reduction as negative numbers using a minus sign.*

Answer 1