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	$ 243,100
Accounts Receivable	964,900
Merchandise Inventory	1,788,600
Estimated Returns Inventory	22,500
Office Supplies	19,700
Prepaid Insurance	6,400
Office Equipment	828,400
Accumulated Depreciation-Office Equipment	545,900
Store Equipment	3,593,800
Accumulated Depreciation-Store Equipment	1,829,700
Accounts Payable	360,900
Customer Refunds Payable	22,500
Salaries Payable	41,000
Note Payable (final payment due 2022)	298,000
Kristina Marble, Capital	3,583,500
Kristina Marble, Drawing	102,600
Sales	11,287,400
Cost of Merchandise Sold	7,850,900
Sales Salaries Expense	919,600
Advertising Expense	549,100
Depreciation Expense-Store Equipment	148,000
Miscellaneous Selling Expense	35,500
Office Salaries Expense	644,000
Rent Expense	103,700
Depreciation Expense-Office Equipment	42,000
Insurance Expense	39,900
Office Supplies Expense	33,900
Miscellaneous Administrative Expense	20,700
Interest Expense	11,600

	Required:
1.	Prepare a multiple-step income statement. In the Other revenue and Operating Expenses section only, enter amounts that represent Other revenue and Operating Expenses as negative numbers using a minus sign.*
2.	Prepare a statement of owner’s equity. Use a minus (-) sign to indicate any negative amount.*
3.	Prepare a report form of balance sheet, assuming that the current portion of the note payable is $54,600. “Less” or “Plus” will automatically appear if it is required.*
4.	Which type of income statement shows intermediate balances?

Answer 1

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