Multiple-step Income statement and balance sheet Instructions Labels and Amount Descriptions Income Statement Statement of Stockholders' Equity Instructions The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2012: Cash $238,400 Accounts receivable 965,200 Inventory 1,771,300 Estimated retums inventory 21,900 Office supplies 17,900 Prepaid insurance 3,300 Office equipment 821,200 Accumulated depreciation-office equipment 544,100 Store equipment 3,601,000 Accumulated depreciation-store equipment 1,816,900 Accounts payable 364,800 Customer refunds payable 44,100 Salaries payable 37,400 Note payable (final payment due in 6 years) 300,000 Common stock 493,800 Retained earnings Dividends 2,999,000 91.700 Multiple-step income statement and balance sheet Instructions Labels and Amount Descriptions Income Statement Statement of Stockholders' Equity Instructions Dividends Sales Cost of goods sold 91,700 11,320,600 7,851,900 Sales salaries expense 898,300 Advertising expense 559,200 Depreciation expense-store equipment 145,000 Miscellaneous selling expense 39,400 Office salaries expense 648,200 Rent expense 90,800 Depreciation expense-office equipment 47,100 Insurance expense 45,900 Office supplies expense 28,000 Miscellaneous administrative expense 6,300 Interest expense 28,700 Required: 1. Prepare a multiple-step income statement. 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 For those boxes in which you must enter subtracted or negative numbers use a minus sign Instructions Rent expense 90,800 Depreciation expense-office equipment 47,100 Insurance expense 45,900 Office supplies expense 28,000 Miscellaneous administrative expense 6,300 Interest expense 28,700 Required: 1. Prepare a multiple-step income statement. 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. 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, 2012. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtrailed or negative numbers use a minus sign 3. Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign 4. Briefly explain how multiple-step and single-step income statements differ Instry Labels and Amount Descriptions The f 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, 2/1 Balances, May 31, 20Y2 Book value-office equipment Book value-store equipment Dividends Gross profit X Clairemont Co. Labels and Amount Descriptions 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 Total current liabilities Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity X Income Statement 1. Prepare a multiple-step income statement. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign 1 1 (Label) (Label) Clairemont Co. Income Statement (Label) Instry Labels and Amount Descriptions Income Statement 9 10 11 (Label) 12 13 14 15 16 17 I 18 19 19 20 21 (Label) 22 22 23 13 Statement of Stockholders' Equity 2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31, 2012. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign Clairemont Co. Statement of Stockholders' Equity (Label) Retained Common Stock Total Earnings Balance Sheet 3. Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign (Label)) Assets Clairemont Co. Balance Sheet (Label) Balance Sheet 4 10 (Label) 11 12 13 . 14 9 15 16 17 = 19 30 (Label) 21 Liabilities Balance Sheet 20 (Label) 21 22 25 13 24 25 26 (Label) 27 28 30 11 32 35 Stockholders' Equity 21 22 22 Final Question 23 24 25 26 Briefly explain how multiple-step and single-step income statements differ. Which type of income statement shows intermediate balances? Single-step Multiple-step 27 28 29 30 31 32 33