Instructions

Journalize the transactions.

6-5A 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, 2016:

Accounts

Balance

Accounts

Balance

Cash

$240,000

Kristina Marble, Drawing

$100,000

Accounts Receivable

966,000

Sales

11,343,000

Merchandise Inventory

1,712,500

Cost of Merchandise Sold

7,850,000

Office Supplies

13,500

Sales Salaries Expense

916,000

Prepaid Insurance

8,000

Advertising Expense

550,000

Office Equipment

830,000

Depreciation Expense Store Equipment

140,000

Accumulated Depreciation Office Equipment

550,000

Miscellaneous Selling Expense

38,000

Store Equipment

3,600,000

Office Salaries Expense

650,000

Accumulated Depreciation Store Equipment

1,820,000

Rent Expense

94,000

Accounts Payable

366,000

Depreciation Expense Office Equipment

50,000

Salaries Payable

41,500

Insurance Expense

48,000

Note Payable (final payment due 2022)

300,000

Office Supplies Expense

28,100

Kristina Marble, Capital

3,449,100

Miscellaneous Administrative Exp.

14,500

Interest Expense

21,000

Instructions

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity.

3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $50,000.