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 (current portion) 50,000 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 ExpenseStore Equipment 140,000 Miscellaneous Selling Expense 38,000 Office Salaries Expense 650,000 Rent Expense 94,000 Depreciation ExpenseOffice 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 theOther 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 Less or Plus will automatically appear if it is required 4 Briefly explain (a) how multiple step and single step income statements differ and (b) how report form and account form balance sheets differ Be sure to complete the statement headings 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 Labels Amount Descriptions Administrative expenses Gross profit Current assets Income from operations Current liabilities Increase in owners equity For the Year Ended May 31, 2016 Kristina Marble, capital, June 1, 2015 Long term liabilities Kristina Marble, capital, May 31, 2016 May 31, 2016 Less withdrawals Operating expenses Net income Other income and expense Net income for the year Property, plant, and equipment Net loss Selling expenses Total administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and owners equity Total operating expenses Total property, plant, and equipment Total selling expenses Incomestatement 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 In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign Statement of owner's equity 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 In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign Balamce Sheet Prepare a report form of balance sheet 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 Less or Plus will automatically appear if it is required A colon ( ) will automatically appear if it is required Questions Briefly explain (a) how multiple step and single step income statements differ and (b) how report form and account form balance sheets differ (a) Which type of income statement shows intermediate balances Multiple step or Single step (b) Which type of balance sheet presents assets, liabilities, and owner's equity in a downward sequence Account form or Report form

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

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 (current portion)	50,000
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 ExpenseStore Equipment	140,000
Miscellaneous Selling Expense	38,000
Office Salaries Expense	650,000
Rent Expense	94,000
Depreciation ExpenseOffice 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 theOther 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. Less or Plus will automatically appear if it is required.*
4.	Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

* Be sure to complete the statement headings. 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.

Labels	Amount Descriptions
Administrative expenses	Gross profit
Current assets	Income from operations
Current liabilities	Increase in owners equity
For the Year Ended May 31, 2016	Kristina Marble, capital, June 1, 2015
Long-term liabilities	Kristina Marble, capital, May 31, 2016
May 31, 2016	Less withdrawals
Operating expenses	Net income
Other income and expense	Net income for the year
Property, plant, and equipment	Net loss
Selling expenses	Total administrative expenses
	Total assets
	Total current assets
	Total current liabilities
	Total liabilities
	Total liabilities and owners equity
	Total operating expenses
	Total property, plant, and equipment
	Total selling expenses

Incomestatement

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. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Statement of owner's equity

Balamce Sheet

Prepare a report form of balance sheet. 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. Less or Plus will automatically appear if it is required. A colon (:) will automatically appear if it is required.

Questions

Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

(a) Which type of income statement shows intermediate balances?

Multiple-step or Single-step

(b) Which type of balance sheet presents assets, liabilities, and owner's equity in a downward sequence?

Account form or Report form