Sales and purchase-related transactions using perpetual inventory system

The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.

July 3.	Purchased merchandise on account from Hamling Co., list price $77,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $910 added to the invoice.
5.	Purchased merchandise on account from Kester Co., $46,850, terms FOB destination, 2/10, n/30.
6.	Sold merchandise on account to Parsley Co., $14,920, terms n/15. The cost of the goods sold was $9,790.
7.	Returned merchandise with an invoice amount of $14,000 purchased on July 5 from Kester Co.
13.	Paid Hamling Co. on account for purchase of July 3.
15.	Paid Kester Co. on account for purchase of July 5, less return of July 7.
21.	Received cash on account from sale of July 6 to Parsley Co.
21.	Sold merchandise on MasterCard, $239,690. The cost of the goods sold was $151,260.
22.	Sold merchandise on account to Tabor Co., $60,000, terms 2/10, n/30. The cost of the goods sold was $34,040.
23.	Sold merchandise for cash, $38,660. The cost of the goods sold was $24,530.
28.	Paid Parsley Co. a cash refund of $6,020 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,020.
31.	Paid MasterCard service fee of $3,620.

Required:

Journalize the transactions. If an amount box does not require an entry, leave it blank.

July 3
July 5
July 6
July 6
July 7
July 13
July 15
July 21
July 21
July 21
July 22
July 22
July 23
July 23
July 28
July 28
July 31

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:

Cash	$245,100
Accounts receivable	971,100
Inventory	1,786,300
Estimated returns inventory	22,200
Office supplies	22,100
Prepaid insurance	7,600
Office equipment	839,400
Accumulated depreciation-office equipment	548,200
Store equipment	3,607,700
Accumulated depreciation-store equipment	1,816,600
Accounts payable	365,900
Customer refunds payable	33,200
Salaries payable	42,500
Note payable (final payment due in 6 years)	299,000
Common stock	496,400
Retained earnings	3,140,600
Dividends	98,800
Sales	11,256,200
Cost of goods sold	7,856,100
Sales salaries expense	907,500
Advertising expense	547,800
Depreciation expense-store equipment	144,800
Miscellaneous selling expense	31,700
Office salaries expense	664,600
Rent expense	84,400
Depreciation expense-office equipment	53,800
Insurance expense	56,200
Office supplies expense	24,100
Miscellaneous administrative expense	14,900
Interest expense	12,400

	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, 20Y2. 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.
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.