PR 5-5A Multiple-step income statement and balance sheet The 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 Retained Earnings $2,949,100 Accounts Receivable 966,000 Dividends 100,000 Inventory 1,690,000 Sales 11,343,000 Estimated Returns Inventory 22,500 Cost of Goods 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- Accumulated Depreciation- Store Equipment 140,000 Office Equipment 550,000 Miscellaneous Selling Expense 38,000 Store Equipment 3,600,000 Office Salaries Expense 650,000 Accumulated Depreciation- Rent Expense 94,000 Store Equipment 1,820,000 Depreciation Expense- Accounts Payable 326,000 Office Equipment 50,000 Customer Refunds Payable 40,000 Insurance Expense 48,000 Salaries Payable 41,500 Office Supplies Expense 28,100 Note Payable (final payment due 2024) 300,000 Miscellaneous Administrative Exp. 14,500 Common Stock 500,000 Interest Expense 21,000 13 1. 14 15 16 17 18 19 Sales Cost of goods sold Gross profit 20 Expenses: 21 Selling expenses: 22 23 24 25 CLAIREMONT CO. Income Statement 26 Total selling expenses 27 Administrative expenses: 28 29 30 31 32 33 34 Total administrative expenses 35 Total operating expenses 36 Income from operations Pr. 5-5A 17 Sales 18 Cost of goods sold 19 Gross profit 20 Expenses: 21 Selling expenses: 22 23 24 25 26 27 Total selling expenses Administrative expenses: 28 29 30 31 32 33 34 35 36 37 Total administrative expenses Total operating expenses Income from operations Other revenue and expense: 38 39 Net income 40 Ready 56F Pr. 5-5A O L B 23 42 2. Retained earnings, June 1, 2017 CLAIREMONT CO. Retained Earnings Statement Retained earnings, May 31, 2018 43 44 45 46 47 48 678 49 50 51 52 53 3. 54 55 56 57 58 59 60 61 62 63 64 65 66 Current assets: Ready 56F Total current assets: Property plant and enuinment Pr. 5-5A CLAIREMONT CO. Balance Sheet Assets Q a MRISE features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Activate Use 22 D2 x AB C 54 F G Balance Sheet M 0 P 67 71 72 75 56 57 58 59 60 61 62 63 64 65 355522222322REEFERRER Assets Current assets: 66 68 69 70 Total current assets: Property, plant and equipment: Office equipment Store equipment Total property, plant, and equipment 73 Total assets 74 Liabilities 76 Current liabilities: 77 78 Pr. 5-5A NOTICE & folk the forenset can contain viruses. Unless you need to edit it's safer to stay in Protected View Most features are disabled because your Office product is inactive. To use for free, sign in and use the Web version. Enable Editing Activate D2 E x fx AB C D E F 72 73 74 75 76 79 PREPPER STEER Total property, plant, and equipment Total assets Liabilities Current liabilities 77 78 80 81 Total current liabilities: 82 Long-term liabilities: 83 84 Total liabilities 85 86 Stockholders' Equity 87 Common stock 88 Retained earnings 89 90 Total stockholders' equity Total liabilities and stockholders' equity 91 92 93 4. (Key essay answer here) 94 95 96 97 Pr. 5-SA Ready 56F Use free at Office.com P R S