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	$ 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	103,300
Sales	11,271,800
Cost of Merchandise Sold	7,851,700
Sales Salaries Expense	914,200
Advertising Expense	541,800
Depreciation Expense-Store Equipment	138,200
Miscellaneous Selling Expense	34,100
Office Salaries Expense	656,600
Rent Expense	86,800
Depreciation Expense-Office Equipment	55,000
Insurance Expense	54,800
Office Supplies Expense	30,700
Miscellaneous Administrative Expense	17,400
Interest Expense	30,900

	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 $53,200. “Less” or “Plus” will automatically appear if it is required.*
4.	Which type of income statement shows intermediate balances?

*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 Operating Expenses Current assets Current liabilities For the Year Ended May 31, 2019 Long-term liabilities May 31, 2019 Operating Expenses Other revenue and expense Property, plant, and equipment Selling Operating Expenses 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 operating expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and owner’s equity Total operating expenses Total property, plant, and equipment Total selling operating expenses

Answer 1

Answer 1.

Answer 2.

Answer 3.

Answer 4.

Multi-step income statement shows intermediate balances.