Instructions The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year en 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 in 6 years) 300,000 Common stock 500,000 Retained earnings 2.949.100 100 000 Dividends 11.343,000 Sales 7,850,000 Cost of goods sold 916,000 Sales salaries expense 550.000 Advertising expense Salaries payable 40000 Note payable (final payment due in 6 years) 41,500 Common stock 300.000 Retained earnings 500,000 2.949.100 Dividends 100.000 Sales 11,343,000 Cost of goods sold 7,850,000 Sales salaries expense 916.000 Advertising expense Depreciation expense-store equipment 550.000 140.000 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: 7. Prepare a multiple-step income statement. Be sure to complete the statement heading Refer Amount Descriptions provided for the exact wording of the answer choices for text entries. Ac For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Prepare a statement of stockholders'equity. Additional common stock of $75,000 was issued list of Labels and Amount Descriptions provided for the exact wording of the answer choices f enter subtracted or negative numbers use a minus sign. 7,850,000 se 916.000 550.000 7 -store equipment 140,000 expense 38,000 650,000 94,000 Office equipment 50.000 48.000 28,100 rative expense 14.500 21,000 income statement. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and rovided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. ch you must enter subtracted or negative numbers use a minus sign. stockholdersequity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the at Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must tive numbers use a minus sign. Required: 1. Prepare a multiple-step income statement. Be sure to complete the statement heading. Refer to the problem data and the list of L. Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2 list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in wh enter subtracted or negative numbers use a minus sign. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. Be sure to complete the statement hea the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entri () will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus 4. Briefly explain how multiple-step and single-step income statements differ. els and mount n Labels and Amount Descriptions 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 eBook Print Item 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 For the Year Ended May 31, 20Y2 1 Sales $11.343,000.00 2 Cost of goods sold 7,850,000.00 3 Gross profit $3,493,000.00 4 Operating expenses: 5 Selling expenses 6 Sales salaries expense $916,000.00 Advertising expense 550,000.00 8 Depreciation expense-store equipment 140,000.00 9 Miscellaneous selling expense 38,000.00 10 Total selling expenses $1,644,000.00 11 Administrative expenses: 12 Office salaries expense $650,000.00 13 Rent expense 94,000.00 14 Depreciation expense-office equipment 50,000.00 15 Insurance expense 48,000.00 16 Office supplies expense 28,100.00 17 Miscellaneous administrative expense 14.500.00 18 884,600.00 Total administrative expenses 2,528,600.00 19 Total operating expenses $964,400.00 20 Operating income 21 Total selling expenses! 21,000.00 22 Interest expense $943.400.00 23. Net income nust enter subtracted or negative numbers use a minus sign clairemont Co Score: 77/77 Statement of Stockholders Equity For the Year Ended May 31, 20Y2 Common Stock Total Retained Earnings $2,949,100.00 $425,000.00 2 Balances, June 1, 2011 $3,374,100.00 75,000.00 75,000.00 13 Issued common stock 943,400.00 943,400.00 4 || Net income (100,000.00) (100,000.00) Dividends $500,000.00 $3,792,500.00 $4,292,500.00 6. Balances, May 31, 2012 Feedback Check My Work Start with the beginning balances for common stock and retained earnings. Consider any common stock Issued during the year, net incon Clairemont Co. Score: 237 Balance Sheet May 31, 20Y2 1 Assets 7 Current assets. 3 Cash $240,000.00 14 Accounts receivable 966,000.00 Inventory 1,690,000.00 6 Estimated returns inventory 22,500.00 Office supplies 13,500.00 Prepaid insurance 8,000.00 9 Total current assets $2,940,000 10 Property, plant, and equipment: 11 Office equipment $830,000.00 12 Accumulated depreciation Office equipment (550,000.00) 13 Book value-office equipment $280,000.00 Store equipment $3,600,000.00 15 Accumulated depreciation-Store equipment (1,820,000.00 16 Book value-store equipment 1,780,000.00 2,060,000 117 Total property, plant, and equipment Total assets $5,000,000. Llabilities antibilities: neck My Work 7 more Check My Work uses remaining. All we hent Score: 98.94% pe here to search O in 3 Book value-office equipment $280,000.00 4 Store equipment $3,600,000.00 5 Accumulated depreciation Store equipment (1.820,000.00) -6 Book value-store equipment 1,780,000.00 27 Total property, plant, and equipment 2,060,000.00 18 Total assets $5,000,000.00 Liabilities 20 Current liabilities: 211 Accounts payable $326,000.00 22 Customer refunds payable 40,000.00 23 Salaries payable 41,500.00 24 Note payable (current portion) 50,000.00 25 Total current liabilities $457,500.00 26. Long-term liabilities: 27. Long-term liabilities 250,000.00 $707,500.00 28 Total tiabilities Stockholers' Equity $500,000.00 30. Common stock 31 Retained earnings 3.792,500.00 4,292,500.00 32 Total stockholders equity $5,000,000.00 33 Total liabilities and stockholders equity