In: Accounting
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:
Cash | $111,200 | Retained Earnings | 490,200 | |
Accounts Receivable | 301,900 | Dividends | 66,600 | |
Inventory | 338,100 | Sales | $4,074,100 | |
Estimated Returns Inventory | 22,500 | Cost of Goods Sold | 2,356,600 | |
Office Supplies | 10,500 | Sales Salaries Expense | 662,700 | |
Prepaid Insurance | 8,100 | Advertising Expense | 182,200 | |
Office Equipment | 244,800 | Depreciation Expense— Store Equipment |
35,500 |
|
Accumulated Depreciation— Office Equipment |
166,300 |
Miscellaneous Selling Expense | 15,600 | |
Store Equipment | 764,100 | Office Salaries Expense | 361,800 | |
Accumulated Depreciation— Store Equipment |
244,800 |
Rent Expense | 53,400 | |
Accounts Payable | 169,400 | Depreciation Expense— Office Equipment |
26,700 |
|
Customer Refunds Payable | 40,000 | Insurance Expense | 16,600 | |
Salaries Payable | 10,800 | Office Supplies Expense | 9,800 | |
Note Payable (final payment due 2024) |
355,000 |
Miscellaneous Administrative Exp. | 7,100 | |
Common Stock | 56,000 | Interest Expense | 10,800 |
1. Prepare a multiple-step income statement.
Clairemont
Co. Income Statement For the Year Ended May 31, 2018 |
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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 |
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3. Prepare a balance sheet, assuming that the current portion of the note payable is $17,750.
Clairemont
Co. Balance Sheet May 31, 2018 |
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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?