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The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016: Cash $
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016:
Cash | $ 240,000 |
Accounts Receivable | 966,000 |
Merchandise Inventory | 1,712,500 |
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 | 366,000 |
Salaries Payable | 41,500 |
Note Payable (final payment due 2022) | 300,000 |
Kristina Marble, Capital | 3,449,100 |
Kristina Marble, Drawing | 100,000 |
Sales | 11,343,000 |
Cost of Merchandise Sold | 7,850,000 |
Sales Salaries Expense | 916,000 |
Advertising Expense | 550,000 |
Depreciation Expense-Store Equipment | 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: | |
1. | Prepare a multiple-step income statement. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.* |
2. | Prepare a statement of owners equity.* |
3. | Prepare a report form of balance sheet, assuming that the current portion of the note payable is $50,000. Less or Plus will automatically appear if it is required.* |
4. | Answer the questions on (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ. |
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