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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, 2018: Cash $

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
Accounts receivable966,000
Inventory1,690,000
Estimated returns inventory22,500
Office supplies13,500
Prepaid insurance8,000
Office equipment830,000
Accumulated depreciation-office equipment550,000
Store equipment3,600,000
Accumulated depreciation-store equipment1,820,000
Accounts payable326,000
Customer refunds payable40,000
Salaries payable41,500
Note payable (final payment due 2024)300,000
Common stock500,000
Retained earnings2,949,100
Dividends100,000
Sales11,343,000
Cost of goods sold7,850,000
Sales salaries expense916,000
Advertising expense550,000
Depreciation expense-store equipment140,000
Miscellaneous selling expense38,000
Office salaries expense650,000
Rent expense94,000
Depreciation expense-office equipment50,000
Insurance expense48,000
Office supplies expense28,100
Miscellaneous administrative expense14,500
Interest expense21,000

 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. Negative amount should be indicated by the minus sign. A colon (:) will automatically appear if it is required. (I HAVE ALREADY DONE THIS. PLEASE CORRECT THE WRONG ANSWER IN THE RED CELL BELOW)

Assets 2 Current assets: 3 Cash 4 Accounts receivable Inventory 6 Estimated returns inventory 7 Office supplies 8 Prepaid insurance 9 Total current assets 10 Property, plant, and equipment: 11 Office equipment Clairemont Co. Balance Sheet May 31, 2018 $830,000.00 Score: 222/233 $240,000.00 96600000 1,690,000.00 22,500.00 13,500.00 8,000.00 $2,940,000.00
 

Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account titles. Recall that closing entries involve all temporary accounts. No permanent accounts from the balance sheet are closed. Contra accounts, like Accumulated Depreciation-Office Equipment are treated like the account to which it is related (Office Equipment), with an opposite debit/credit effect in the closing process.Close the Revenue account to Income Summary. Next close all expense accounts and contra revenue accounts to Income Summary. Close Income Summary to the Retained Earnings account. Finally, close the Dividends account to the Retained Earnings account. There are 20 lines in the journal, with line one being the description "closing entries" with no debit or credit amounts. I have included the income statement and retained earnings statement below for reference, in addition to the chart of accounts.

CHART OF ACCOUNTS
Clairemont Co.
General Ledger
 ASSETS
110Cash
120Accounts Receivable
125Notes Receivable
130Inventory
131Estimated Returns Inventory
140Office Supplies
141Store Supplies
142Prepaid Insurance
180Land
192Store Equipment
193Accumulated Depreciation-Store Equipment
194Office Equipment
195Accumulated Depreciation-Office Equipment
 LIABILITIES
210Accounts Payable
216Salaries Payable
217Note Payable (current portion)
218Note Payable (final payment due 2024)
219Sales Tax Payable
 EQUITY
310Common Stock
311Retained Earnings
312Dividends
313Income Summary

 

 REVENUE
410Sales
 EXPENSES
510Cost of Goods Sold
521Delivery Expense
522Advertising Expense
524Depreciation Expense-Store Equipment
525Depreciation Expense-Office Equipment
526Sales Salaries Expense
527Office Salaries Expense
531Rent Expense
533Insurance Expense
534Store Supplies Expense
535Office Supplies Expense
536Credit Card Expense
540Miscellaneous Selling Expense
541Miscellaneous Administrative Expense
710Interest Expense

Clairemont Co. Score: 222/233 Balance Sheet May 31, 2018 1 Assets 2 Current assets: Cash $240,000.00 4 Accounts receivable 966,000.00 5 Inventory 1,690,000.00 6 Estimated returns inventory 22,500.00 Office supplies 13,500.00 7 Prepaid insurance 8.000.00 8 Total current assets $2,940,000.00 9. 10 Property, plant, and equipment: 11 Office equipment $830,000.00

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