Question

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	99,900
Sales	11,403,800
Cost of goods sold	7,842,100
Sales salaries expense	923,100
Advertising expense	540,500
Depreciation expense-store equipment	134,900
Miscellaneous selling expense	37,800
Office salaries expense	664,400
Rent expense	101,000
Depreciation expense-office equipment	45,900
Insurance expense	42,700
Office supplies expense	31,800
Miscellaneous administrative expense	7,100
Interest expense	11,800

Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended May 31, 20Y2
Long-term liabilities
May 31, 20Y2
Operating expenses
Other revenue and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Balances, June 1, 20Y1
Balances, May 31, 20Y2
Book value-office equipment
Book value-store equipment
Dividends
Gross profit
Issued common stock
Net income
Net loss
Note payable (current portion)
Operating income
Total administrative expenses
Total assets
Total current assets
Total current liabilities
Total liabilities
Total liabilities and stockholders’ equity
Total operating expenses
Total property, plant, and equipment
Total selling expenses
Total stockholders’ equity

3. Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. Be sure to complete the statement heading. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Clairemont Co.

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19	Liabilities
20
21
22
23
24
25
26
27
28
29	Stockholders’ Equity
30
31
32
33

Answer 1

664400 101000 45900 42700 31800 7100 Administrative expenses Administrative Expenses Office Salaries Expense Rent Expense Depreciation Expense-Office Equipment Insurance Expense Office Supplies Expense Miscellaneous administrative expense Current assets Cash Accounts Receivable Merchandise Inventory Estimated returns Inventory Office Supplies Prepaid Insurance Current liabilities Accounts Payable Customer Refunds Payable Salaries Payable Note Payable(Current Portion) For the Year Ended May 31, 2012 Long-term liabilities May 31, 2012 Operating expenses Other revenue and expense Sales Interest Expense Property, plant, and equipment Selling expenses 232700 957000 1668600 21300 15600 18000 361900 43400 41900 58000 238000 2529200 11403800 11800 2038700

923100 540500 134900 37800 Sales Salaries Expenses Advertising Expense Depreciation Expense-Store Equipment Miscellaneous selling expense-Store Equipment Amount Descriptions Balances, June 1, 2011 Balances, May 31, 20Y2 Book value-office equipment Book value-store equipment Dividends Gross profit Issued common stock Net income Net loss Note payable (current portion) Operating income Total administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity 271000 1767700 99900 3561700 501600 1020700 0 58000 1032500 892900 4951900 2913200 505200 743200 4951900 2529200 2038700 1636300 4208700

Clairemont Company Income Statement For the year ended May 31,2012 Amount($) 11403800 7842100 3561700 1636300 Sales Cost of Merchandise sold Gross Profit Expenses Selling Expenses: Sales Salaries Expenses 923100 Advertising Expense 540500 Depreciation Expense-Store 134900 Miscellaneous selling expense 37800 Total Selling Expenses Administrative Expenses Office Salaries Expense 664400 Rent Expense 101000 Depreciation Expense-Office 45900 Insurance Expense 42700 Office Supplies Expense 31800 Miscellaneous administrative 7100 Total Administrative Expenses Total Operating expenses Income from operation Other Expense Interest Expense Net Income 892900 2529200 1032500 11800 1020700

Clairemont Company Statement of owner's equity For the year ended May 31st 2012 Balance Net Income for the year Dividends Balance May 31st2018 Common Stock Retained Earnings $ 5,01,600 $ 2786300 $ 1020700 $-99900 $ 5,01,600 $ 3707100 Total $ 3287900 $ 1020700 $-99900 $ 4208700

Hope You Understood. If you have any doubt please leave a comment. Thank You