Question
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:
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 |
Dividends | 100,000 |
Sales | 11,343,000 |
Cost of goods 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 |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clairemont Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement headings. Refer to the Chart of Accounts and 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. A colon (:) will automatically appear if it is required.
2. Prepare a statement of stockholders equity. Be sure to complete the statement heading. Refer to the Amount Descriptions list 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 balance sheet, assuming that the current portion of the note payable is $50,000. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
4. Prepare closing entries as of May 31, 20Y2. Refer to the Chart of Accounts for exact wording of account titles.
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