Question
he following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $
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 |
Sales | 11,343,000 |
Cost of goods sold | 7,850,000 |
Sales salaries expense | 916,000 |
Advertising expense | 550,000 |
Depreciation expense-store equipment | 140,000 |
Miscellaneous selling expense | 38,000 |
Office salaries expense | 650,000 |
Rent expense | 94,000 |
Depreciation expense-office equipment | 50,000 |
Insurance expense | 48,000 |
Office supplies expense | 28,100 |
Miscellaneous administrative expense | 14,500 |
Interest expense | 21,000 |
Required: | |
1. | Prepare a multiple-step income statement. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.* |
2. | Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.* |
3. | Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.* |
4. | Briefly explain how multiple-step and single-step income statements differ. |
* 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. |
Prepare a retained earnings statement. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Negative amount should be indicated by the minus sign. A colon (:) will automatically appear if it is required.
Question not attempted.
Score: 0/45
Clairemont Company |
Retained Earnings Statement |
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Prepare a report form of balance sheet. 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. Negative amount should be indicated by the minus sign.
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