Question

me PR 6-5A Multiple-step income statement and balance sheet OBJ. 3 The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: $ 240,000 966,000 1,690,000 22,500 13,500 8,000 830,000 $ 100,000 11,343,000 7,850,000 916,000 550,000 Cash Accounts Receivable Merchandise 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 2022) Kristina Marble, Capital Kristina Marble, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 140,000 38,000 650,000 94,000 550,000 3,600,000 1,820,000 326,000 40,000 41,500 50,000 48,000 28,100 14,500 21,000 300,000 3,449,100

Answer 1

Amount Amount $11,343,000 $7,850,000 $3,493,000 Clairemont Co. Income Statement For the Year Ended May 31, 2019 Particulars Sales Less: Cost of goods sold Gross Profit Operating Expenses Selling Expenses Sales Salaries Expense $916,000 Advertising Expense $550.000 Depreciation expense-Store equipment $140,000 Miscellaneous Selling Expense $38,000 Total Selling Expenses Administrative Expenses Office Salaries Expense $650,000 Rent Expense $94.000 Insurance Expense $48.000 Depreciation Expense-Office equipment $50.000 Office Supplies expense $28.100 Miscellaneous Administrative Expense $14,500 Total Administrative Expenses Total Operating Expenses Income from operations Other Expense Interest Expense Net Income $1,644.000 S884.600 $2,528,600 $964.400 $21,000 $943,400 $3,449.100 Clairemont Co. Statement of owner's Equity For the Year Ended May 31, 2019 Kristina Marble, Capital May 1, 2019 Add: Net Income Less: Kristina Marble, Drawings (Withdrawals) Increase in Owner's Equity Kristina Marble, Capital May 31, 2019 $943,400 $100,000 $843.400 $4,292,500 $240,000 $966,000 $1.690.000 $22.500 $13,500 $8.000 $2.940,000 $280,000 Clairemont Co. Balance Sheet As on May 31, 2019 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Estimated returns Inventory Office Supplies Prepaid Insurance Total Current Assets Property Plant and Equipment Office Equipment $830,000 Less: Accumulated Depreciation Office Equip. $550.000 Store Equipment $3.600.000 Less: Accumulated Depreciation-Store Equip $1.820,000 Total Property Plant and Equipment Total Assets Liabilities and Owner's Equity Current liabilities Accounts Payable Customer refunds Payable Salaries payable Total current liabilities Long-term liabilities Notes Payable (Final payment due 2022) Total liabilities Owner's equity Kristina Marble, Capital Total Liabilities & Owner Equity $1,780,000 $2.060,000 $5,000,000 $326.000 $40.000 $41.500 $407,500 $300.000 $707,500 $4,292,500 $5,000,000