Question

Multiple-Step Income Statement and Report Form of Balance Sheet

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

Cash	$128,300		Retained Earnings	565,500
Accounts Receivable	345,100		Dividends	76,800
Inventory	390,000		Sales	$4,699,500
Estimated Returns Inventory	22,500		Cost of Goods Sold	2,718,300
Office Supplies	12,100		Sales Salaries Expense	764,400
Prepaid Insurance	9,400		Advertising Expense	210,200
Office Equipment	282,400		Depreciation Expense—    Store Equipment	41,000
Accumulated Depreciation—    Office Equipment	191,900		Miscellaneous Selling Expense	17,900
Store Equipment	881,400		Office Salaries Expense	417,300
Accumulated Depreciation—    Store Equipment	282,400		Rent Expense	61,600
Accounts Payable	195,400		Depreciation Expense—    Office Equipment	30,800
Customer Refunds Payable	40,000		Insurance Expense	19,100
Salaries Payable	12,500		Office Supplies Expense	11,300
Note Payable    (final payment due 2024)	410,000		Miscellaneous Administrative Exp.	8,200
Common Stock	63,400		Interest Expense	12,500

Required:

1. Prepare a multiple-step income statement.

Clairemont Co. Income Statement For the Year Ended May 31, 2018
Expenses:
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total operating expenses

2. Prepare a retained earnings statement.

Clairemont Co. Retained Earnings Statement For the Year Ended May 31, 2018

3. Prepare a balance sheet, assuming that the current portion of the note payable is $20,500.

Clairemont Co. Balance Sheet May 31, 2018
Assets
Current assets:
Total current assets
Property, plant and equipment:
Total property, plant and equipment
Total assets
Liabilities
Current liabilities:
Total current liabilities
Long-term liabilities:
Total liabilities
Stockholders' equity
Total stockholders' equity
Total liabilities and stockholders' equity

4. a. Which type of income statement shows intermediate balances?

Answer 1

4. Multi Type of Income statement shows Intermediate balances.