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

Accounts:

Cash	$238,400
Accounts receivable	960,300
Inventory	1,644,400
Estimated returns inventory	20,900
Office supplies	22,200
Prepaid insurance	15,100
Office equipment	825,800
Accumulated depreciation-office equipment	551,100
Store equipment	3,603,000
Accumulated depreciation-store equipment	1,819,400
Accounts payable	351,700
Salaries payable	44,900
Customer refunds payable	48,800
Estimated coupons payable	5,000
Note payable (final payment due in 6 years)	285,000
Common stock	507,300
Retained earnings	2,822,800
Dividends	108,200
Sales	11,405,100
Cost of goods sold	7,856,600
Sales salaries expense	908,400
Advertising expense	545,800
Depreciation expense-store equipment	142,200
Miscellaneous selling expense	41,000
Office salaries expense	651,300
Rent expense	90,800
Depreciation expense-office equipment	40,700
Insurance expense	47,600
Office supplies expense	35,000
Miscellaneous administrative expense	15,200
Interest expense	28,200

	Required:
1.	Prepare a multiple-step income statement.
2.	Prepare a statement of stockholders equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2.
3.	Prepare a balance sheet, assuming that the current portion of the note payable is $56,000.
4.	Briefly explain how multiple-step and single-step income statements differ.

Labels: Administrative expenses, Current assets, Current liabilities, For the Year Ended May 31, 20Y2, Long-term liabilities, May 31, 20Y2, Operating expenses, Other revenue & expense, Property plant & equipment, Selling expenses.

Amount Descriptions: Balances, June 1, 20Y1Balances, May 31, 20Y2, Book value-office equipment, Book value-store equipment, Dividends, Gross profit, Issued common stock, Net income, Net loss, Note payable (current portion), Operating income, Total administrative expenses, Total assets, Total current assets, Total current liabilities, Total liabilities, Total liabilities and stockholders equity, Total operating expenses, Total property plant & equipment, Total selling expenses, Total stockholders equity.

I HAVE ALREADY COMPLETED INCOME STATEMENT AND SOME OF OTHERS. FILL IN CORRECT ANSWER WHERE THERE IS RED FILLED IN OR MARKED OVER!!

Income Statement 1 Sales $11,405,100.00 2 Cost of goods sold 7,856,600.00 3 Gross profit $3,548,500.00 4 Operating expenses: 5 Selling expenses: 6 Sales salaries expense $908,400.00 7 Advertising expense 545,800.00 8 Depreciation expense-store equipment 142,200.00 41,000.00 9 Miscellaneous selling expense 10 Total selling expenses $1,637,400.00 11 Administrative expenses: 12 Office salaries expense $651,300.00 13 Rent expense 90,800.00 14 Insurance expense 47,600.00 > 15 Depreciation expense-office equipment 16 Office supplies expense 40,700.00 35,000.00 15,200.00 17 Miscellaneous administrative expense 18 Total administrative expenses 880,600.00 19 Total operating expenses 2,518,000.00 20 Operating income $1,030,500.00 21 Other revenue and expense: 22 Interest expense 28,200.00 23 Net income $1,002,300.00 Statement of Stockholders' Equity May 31, 20Y2 Retained 1 Common Stock Total Earnings 2 Balances, June 1, 20Y1 $989.00 $9,898.00 $9,898.00 3 Net income 977.00 1,002,300.00 1,002,300.00 4 Dividends 89,009.00 98,987.00 9,897.00 5 Issued common stock 9,898.00 989.00 898.00 6 Balances, May 31, 20Y2 $0.00 $9,889.00 $9,898.00 Balance Sheet For the Year Ended May 31, 20Y2 1 Assets 2 Current assets: 3 Cash $238,400.00 4 Accounts receivable 960,300.00 5 Inventory 1,644,400.00 6 Estimated returns inventory 20,900.00 7 Office supplies 22,200.00 8 Prepaid insurance 15,100.00 9 Total current assets $2,901,300.00 10 Property, plant, and equipment: 11 Office equipment $825,800.00 12 Accumulated depreciation Office equipment (551,100.00) 13 Book value-office equipment $274,700.00 14 Store equipment $3,603,000.00 Balance Sheet Accumulated depreciation-Store equipment 15 (1,819,400.00) 16 Book value-store equipment 1,783,600.00 17 Total property, plant, and equipment 2,058,300.00 18 Total assets $4,959,600.00 19 Liabilities 20 Current liabilities: 21 Accounts payable $351,700.00 22 Customer refunds payable 48,800.00 23 Salaries payable 44,900.00 24 Estimated coupons payable 5,000.00 25 Note payable (current portion) 9,898.00 26 Total current liabilities $9,998.00 27 Long-term liabilities: 28 Note payable (final payment due in 6 years) 9,898.00 29 Total liabilities $90,898.00 30 Stockholders' Equity 31 Common stock $507,300.00 32 Retained earnings 909.00 33 Total stockholders' equity 0.00 34 Total liabilities and stockholders' equity $9,987.00