The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Kristina Marble, Drawing $ 100,000 $ 240,000 Cash Sales Accounts Receivable 966,000 11,343,000 Merchandise Inventory Cost of Merchandise Sold 1,690,000 7,850,000 Estimated Returns Inventory Sales Salaries Expense 916,000 22,500 Office Supplies Prepaid Insurance Office Equipment Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense 13,500 550,000 8,000 140,000 830,000 Accumulated Depreciation- 38,000 Office Salaries Expense Office Equipment Store Equipment Accumulated Depreciation- 650,000 550,000 Rent Expense 3,600,000 94,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Store Equipment Accounts Payable 50,000 1,820,000 48,000 326,000 Customer Refunds Payable 40,000 28,100 Salaries Payable Note Payable Miscellaneous Administrative Exp. 41,500 14,500 Interest Expense 21,000 (final payment due 2022) Kristina Marble, Capital 300,000 3,449,100 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner's equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. Briefly explain how multiple-step and single-step income statements differ. 4.
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Kristina Marble, Drawing $ 100,000 $ 240,000 Cash Sales Accounts Receivable 966,000 11,343,000 Merchandise Inventory Cost of Merchandise Sold 1,690,000 7,850,000 Estimated Returns Inventory Sales Salaries Expense 916,000 22,500 Office Supplies Prepaid Insurance Office Equipment Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense 13,500 550,000 8,000 140,000 830,000 Accumulated Depreciation- 38,000 Office Salaries Expense Office Equipment Store Equipment Accumulated Depreciation- 650,000 550,000 Rent Expense 3,600,000 94,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Store Equipment Accounts Payable 50,000 1,820,000 48,000 326,000 Customer Refunds Payable 40,000 28,100 Salaries Payable Note Payable Miscellaneous Administrative Exp. 41,500 14,500 Interest Expense 21,000 (final payment due 2022) Kristina Marble, Capital 300,000 3,449,100 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner's equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. Briefly explain how multiple-step and single-step income statements differ. 4.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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Question
Transcribed Image Text:The following selected accounts and their current balances appear in the ledger of
Clairemont Co. for the fiscal year ended May 31, 2019:
Kristina Marble, Drawing
$ 100,000
$ 240,000
Cash
Sales
Accounts Receivable
966,000
11,343,000
Merchandise Inventory
Cost of Merchandise Sold
1,690,000
7,850,000
Estimated Returns Inventory
Sales Salaries Expense
916,000
22,500
Office Supplies
Prepaid Insurance
Office Equipment
Advertising Expense
Depreciation Expense-
Store Equipment
Miscellaneous Selling Expense
13,500
550,000
8,000
140,000
830,000
Accumulated Depreciation-
38,000
Office Salaries Expense
Office Equipment
Store Equipment
Accumulated Depreciation-
650,000
550,000
Rent Expense
3,600,000
94,000
Depreciation Expense-
Office Equipment
Insurance Expense
Office Supplies Expense
Store Equipment
Accounts Payable
50,000
1,820,000
48,000
326,000
Customer Refunds Payable
40,000
28,100
Salaries Payable
Note Payable
Miscellaneous Administrative Exp.
41,500
14,500
Interest Expense
21,000
(final payment due 2022)
Kristina Marble, Capital
300,000
3,449,100
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is
$50,000.
Briefly explain how multiple-step and single-step income statements differ.
4.
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