Solution:
1.) Clairemont Company
Income Statement
For the Year Ended May 31, 2018
Sales | $1,1343,000 | |
Cost of goods sold | -$7,850,000 | |
Gross profit | $3,493,000 | |
Operating Expenses: | ||
Selling Expenses: | ||
Sales salaries expenses | $916,000 | |
Advertising expenses | $550,000 | |
Depreciation expense - store equipment | $140,000 | |
Miscellaneous selling expenses | $38,000 | |
Total selling expenses | -$1,644,000 | |
Administrative Expenses: | ||
Office salaries expenses | $650,000 | |
Rent expenses | $94,000 | |
Depreciation expense - office equipment | $50,000 | |
Insurance expenses | $48,000 | |
Office supplies expenses | $28,100 | |
Miscellaneous administrative expenses | $14,500 | |
Total administrative expenses | -$884,600 | |
Total operating expenses | -$2,528,600 | |
Income from operations | $964,400 | |
Other income and expenses: | ||
Interest expense | $21,000 | - $21,000 |
Net income | $943,400 | |
2.) Clairemont Company
Retained Earnings Statement
For the Year Ended May 31, 2018
Retained Earnings, June 1, 2017 | $2,949,100 | |
Net income | $943,400 | |
Dividends | -$100,000 | |
Increase in retained earnings | $843,400 | |
Retained earnings, May 31, 2018 | $3,792,500 |
3.) Clairemont Company
Balance Sheet
May 31, 2018
Assets: | |||
Current Assets: | |||
Cash | $240,000 | ||
Accounts receivable | $966,000 | ||
Inventory | $1,690,000 | ||
Estimated returns inventory | $22,500 | ||
Office supplies | $13,500 | ||
Prepaid insurance | $8,000 | ||
Total current assets | $2,940,000 | ||
Property, plant and equipment: | |||
Office equipment | $830,000 | ||
Accumulated depreciation - office equipment | - $550,000 | ||
Store equipment | $3,600,000 | ||
AcumuAccumu depreciation - store equipment | - $1,820,000 | ||
Total property,plant and equipment | ($280,000+ $1,780,000) | $2,060,000 | |
Total assets | $5,000,000 | ||
Liabilities: | |||
Current liabilities: | |||
Accounts payable | $326,000 | ||
Customer refunds payable | $40,000 | ||
Salaries payable | 41,500 | ||
Note payable (current portion) | $50,000 | ||
Total current liabilities | $457,500 | ||
Long term liabilities: | |||
Note payable (final payment due 2024) | 250,000 | ||
Total liabilities | $707,500 | ||
Stockholders' Equity: | |||
Common stock | $500,000 | ||
Retained earnings | $3,792,500 | ||
Total stockholders'equity | $4,292,500 | ||
Total liabilities and stockholders'equity | $5,000,000 | ||
4.)
The multiple - step form of income statement contains various sections for revenue, expenses , with intermediate balance and conclude with net income. In other words, multiple step income statement is prepared by with each explanation. So it shows intermediate balance.
But, in the single step income statement, the total of all expenses is deducted from the total of all revenues. So, it is not show intermediate balance.
Multiple-step income statement and balance sheet Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement...
Multiple-step income statement and balance sheet Instructions Labels and Amount Descriptions Income Statement Instructions The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 243,100 Accounts receivable 964,900 Inventory 1,788,600 21,200 Estimated returns inventory Office supplies Prepaid insurance 17,800 8,400 Office equipment 825,900 543,800 Accumulated depreciation office equipment Store equipment Accumulated depreciation-store equipment 3,609,700 1,814,900 Jenny expenses Print Item Calculator eBook Multiple-step income statement and...
Instructions Chart Of Accounts Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance S Instructions Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows: Foxy Investigative Services End-of-Period Spreadsheet For the Year Ended November 30, 2018 - Adjusted Trial Balance Dr. Account Title Cr. Cash 27,500 Accounts...
Instructions Chart Of Accounts Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance S Instructions Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows: Foxy Investigative Services End-of-Period Spreadsheet For the Year Ended November 30, 2018 - Adjusted Trial Balance Dr. Account Title Cr. Cash 27,500 Accounts...
SHOW HOW T Calculator Financial statements Instructions Labels and Amount Descriptions Income Statement Instructions Accounts payable Accounts receivable Cash Common stock Fees eamed Land Miscellaneous expense Rent expense Supplies Supplies expense Utilities expense Wages expense $ 72,000 265,000 188,000 70,000 833,000 547,000 6,000 33,000 5,300 4,200 27,500 501,000 2 (Label) Required: 1. Prepare an income statement for the year ended December 31, 2018. Refer to the lists of Accounts, Labels, and Amount Descriptions provide for the exact wording of the...
Exam 1 Calculator Instructions Labels and Amount Descriptions Statement of Stockholders' Equity Instructions Labels and Amount Descriptions The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Labels Expenses Accounts Amount Amount...
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...
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 $114,700 Retained Earnings 505,500 Accounts Receivable 305,800 Dividends 68,700 Inventory 348,600 Sales $4,200,600 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,429,700 Office Supplies 10,800 Sales Salaries Expense 683,300 Prepaid Insurance 8,400 Advertising Expense 187,900 Office Equipment 252,400 Depreciation Expense— Store Equipment 36,600 Accumulated Depreciation— Office Equipment...
Instructions Balance Sheet Labels and Amounts Descriptions Labels Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2018, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows: Prepare a classified balance sheet that includes the correct balance for Cash. Land must be entered as the first fixed asset. Be sure to complete the statement heading...
Question 1: Question 2: Exam 1 E Calculator Labels and Amount Descriptions Instructions Balance Sheet х Labels and Amount Descriptions Instructions Balance Sheet The assets and liabilities of Thompson Computer Services at March 31, the end of Labels Prepare a balance sheet for the current year ended March 31. Be sure to complete the statement heading. the current year, and its revenue and expenses for the year are listed below. The Expenses Refer to the lists of Accounts in the...
Labels and Amount Descriptions Labels December 31, 2018 Expenses For the Year Ended December 31, 2018 Amount Descriptions Change in retained earnings Dividend:s Net income Net loss Retained earnings Retained earnings, December 31, 2018 Retained earnings, January 1, 2018 Total assets Total expenses Total liabilities and stockholders' equity Total stockholders' equity Instructions The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year...