The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019:
Cash | $ 245,100 |
Accounts Receivable | 971,100 |
Merchandise Inventory | 1,786,300 |
Estimated Returns Inventory | 22,500 |
Office Supplies | 15,200 |
Prepaid Insurance | 3,400 |
Office Equipment | 836,100 |
Accumulated Depreciation-Office Equipment | 559,400 |
Store Equipment | 3,598,200 |
Accumulated Depreciation-Store Equipment | 1,827,700 |
Accounts Payable | 362,600 |
Customer Refunds Payable | 22,500 |
Salaries Payable | 40,800 |
Note Payable (final payment due 2022) | 288,000 |
Kristina Marble, Capital | 3,464,100 |
Kristina Marble, Drawing | 104,200 |
Sales | 11,442,000 |
Cost of Merchandise Sold | 7,846,400 |
Sales Salaries Expense | 922,900 |
Advertising Expense | 542,700 |
Depreciation Expense-Store Equipment | 146,100 |
Miscellaneous Selling Expense | 47,000 |
Office Salaries Expense | 658,600 |
Rent Expense | 98,800 |
Depreciation Expense-Office Equipment | 47,000 |
Insurance Expense | 49,500 |
Office Supplies Expense | 18,500 |
Miscellaneous Administrative Expense | 18,300 |
Interest Expense | 29,200 |
Below are the questions
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 $46,000. “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. |
the following are the labels to be used
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 |
Clairemont Co | |||
Income Statement | |||
For the Year Ended May 31, 2019 | |||
Sales | $11,442,000 | ||
Cost of Merchandise sold | $7,846,400 | ||
Gross Profit [$11,442,000 - $7,846,400] | $3,595,600 | ||
Operating expenses: | |||
Selling Operating Expenses | |||
Sales Salaries Expense | $922,900 | ||
Advertising Expense | $542,700 | ||
Depreciation Expense - Store Equipment | $146,100 | ||
Miscellaneous Selling Expenses | $47,000 | ||
Total Selling Operating Expenses | $1,658,700 | ||
Administrative Operating Expenses | |||
Office Salaries Expense | $658,600 | ||
Rent Expense | $98,800 | ||
Insurance Expense | $49,500 | ||
Depreciation Expense - Office Equipment | $47,000 | ||
Office supplies Expenses | $18,500 | ||
Miscellaneous Administrative Expenses | $18,300 | ||
Total Administrative Operating expenses | $890,700 | ||
Total Operating Expenses [$1,658,700 + $890,700] | $2,549,400 | ||
Income from Operations [$3,595,600 - $2,549,400] | $1,046,200 | ||
Other revenue and expense | |||
Interest Expense | ($29,200) | ||
Net income [$1,046,200 - $29,200] | $1,017,000 |
.
.
Clairemont Co | ||
Statement of Owners Equity | ||
For the Year Ended May 31, 2019 | ||
Kristina Marble, capital, June 1, 2018 | $3,464,100 | |
Net Income for the year [Refer Income Statement] | $1,017,000 | |
Withdrawals | ($104,200) | |
Increase in owner's equity [$1,017,000 - $104,200] | $912,800 | |
Kristina Marble, capital, May 31, 2019 [$3,464,100 + $912,800] | $4,376,900 |
.
.
Clairemont Co | |||
Balance Sheet | |||
May 31, 2019 | |||
Assets | |||
Current Assets: | |||
Cash | $245,100 | ||
Accounts Receivable | $971,100 | ||
Merchandise Inventory | $1,786,300 | ||
Estimated returns inventory | $22,500 | ||
Office supplies | $15,200 | ||
Prepaid Insurance | $3,400 | ||
Total current assets | $3,043,600 | ||
Property, Plant, and Equipment | |||
Office Equipment | $836,100 | ||
Less: Accumulated depreciation | $559,400 | $276,700 | |
Store Equipment | $3,598,200 | ||
Less: Accumulated depreciation | $1,827,700 | $1,770,500 | |
Total Property, Plant and Equipment [$276,700 + $1,770,500] | $2,047,200 | ||
Total assets [$3,043,600 + $2,047,200] | $5,090,800 | ||
Liabilities | |||
Current liabilities | |||
Accounts Payable | $362,600 | ||
Customer refunds payable | $22,500 | ||
Salaries payable | $40,800 | ||
Notes payable (Current portion) | $46,000 | ||
Total current liabilities | $471,900 | ||
Long-term liabilities | |||
Notes payable (Final Payment due 2022) [Total notes payable - Current portion notes payable = $288,000 - $46,000] | $242,000 | ||
Total liabilities [$471,900 + $242,000] | $713,900 | ||
Owners Equity | |||
Kristina Marble, capital [Refer Statement of Owners Equity] | $4,376,900 | ||
Total Liabilities and Owner's equity [$713,900 + $4,376,900] | $5,090,800 |
.
.
4. Which type of income statement shows intermediate balances?
Answer: Multiple-step income statement
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Cash $ 245,100 Accounts Receivable 971,100 Merchandise Inventory 1.786,300 Estimated Returns Inventory 22,500 Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Store Equipment Accumulated Depreciation Store Equipment Accounts Payable .827,700 362,600 Customer Refunds Payable Salaries Payable Note Payable (final payment due 2022) Kristina Marble, Capital Kristina Marble, Drawing Sales Cost of Merchandise Sold Sales Salaries...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $109,500 Retained Earnings Dividends Accounts Receivable Inventory Estimated Returns Inventory Sales 297,200 332,900 22,500 10,300 8,000 482,700 65,600 $4,011,400 2,320,300 652,500 179,400 Office Supplies Prepaid Insurance Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Office Equipment 241,000 35,000 Miscellaneous Selling Expense 15,300 Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $123,500 Retained Earnings 544,200 Accounts Receivable 335,100 Dividends 73,900 Inventory 375,300 Sales $4,522,400 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,615,800 Office Supplies 11,600 Sales Salaries Expense 735,600 Prepaid Insurance 9,000 Advertising Expense 202,300 Office Equipment 271,700 Depreciation Expense— Store Equipment 39,400 Accumulated Depreciation— Office Equipment 184,600 Miscellaneous Selling Expense 17,300 Store Equipment 848,200 Office...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $232,700 Accounts receivable 957,000 Inventory 1,668,600 Estimated returns inventory 21,300 Office supplies 15,600 Prepaid insurance 18,000 Office equipment 827,000 Accumulated depreciation-office equipment 556,000 Store equipment 3,594,800 Accumulated depreciation-store equipment 1,827,100 Accounts payable 361,900 Customer refunds payable 43,400 Salaries payable 41,900 Note payable (final payment due in 6 years) 296,000 Common stock 501,600 Retained earnings 2,786,300 Dividends...
he following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Accounts receivable 966,000 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 2024) 300,000 Common stock 500,000 Retained earnings 2,949,100 Dividends 100,000...
The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year. Cash $250,000 Retained Earnings $2,850,000 Accounts Receivable 1,197,000 Dividends 50,000 Inventory 1,790,000 Sales 9,350,000 Estimated Returns Inventory 23,500 Cost of Goods Sold 5,840,000 Office Supplies 14,000 Sales Salaries Expense 820,000 Prepaid Insurance 8,500 Advertising Expense 350,000 Office Equipment 870,000 Depreciation Expense-Store Equipment 120,000 Accumulated Depreciation-Office Equipment 580,000 Miscellaneous Selling Expense 58,000 Store Equipment 2,600,000 Office Salaries Expense 550,000...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $238,400 Accounts receivable 960,300 Inventory 1,644,400 Estimated returns inventory 20,900 Office supplies 22,200 Prepaid insurance 15,100 Office equipment 825,800 Accumulated depreciation-office equipment 551,100 Store equipment 3,603,000 Accumulated depreciation-store equipment 1,819,400 Accounts payable 356,700 Customer refunds payable 48,800 Salaries payable 44,900 Note payable (final payment due in 6 years) 285,000 Common stock 507,300 Retained earnings 2,822,800 Dividends...
The following accounts and their current balances appear in the ledger of Cerelat Co. at the end of its fiscal year, June 30. Cerelat uses a periodic inventory system. Cash $450,000 Sales 1,600,000 Accounts Receivable 650,000 Purchases 850,000 Inventory 850,000 Purchases Returns and Allowances 7,000 Estimated Returns Inventory 15,000 Purchases Discounts 3,500 Office Supplies 8,000 Freight In 16,000 Prepaid Insurance 8,500 Sales Salaries Expense 210,000 Office Equipment 900,000 Advertising Expense 100,000 Accumulated Depreciation-Office Equipment 600,000 Depreciation Expense-Store Equipment 48,000 Store...
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018 Cash Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Store equipment Accumulated depreciation-store equipment Accounts payable Customer refunds payable Salaries payable Note payable (final payment due 2024) Common stock Retained earnings Dividends Sales $238,400 960,300 1,644,400 20,900 22,200 15,100 825,800 551,100 3,603,000 1,819,400 356,700 48,800 44,900 285,000 507,300 2,822,800 108,200...