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 Required: 1. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to 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. 3. Prepare a 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. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 4. Briefly explain how multiple-step and single-step income statements differ.
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 Required: 1. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to 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. 3. Prepare a 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. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 4. Briefly explain how multiple-step and single-step income statements differ.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 5PB: Multiple-step income statement and balance sheet The following selected accounts and their current...
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Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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 | $ 240,000 |
| 966,000 | |
| Inventory | 1,690,000 |
| Estimated returns inventory | 22,500 |
| Office supplies | 13,500 |
| Prepaid insurance | 8,000 |
| Office equipment | 830,000 |
| Accumulated |
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 |
| 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 |
| Required: | |
| 1. | 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
| 2. | Prepare a statement of |
| 3. | Prepare a |
| 4. | Briefly explain how multiple-step and single-step income statements differ. |
Statement of Stockholders’ Equity
2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to 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
![Multiple-step income statement and balance sheet
Labels and Amount Descriptions
Labels
Instructions Labels and Amount Descriptions
Income Statement
Statement of Stockholders' Equity
Administrative expenses
Current assets
Instructions
Current liabilities
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:
For the Year Ended May 31, 20Y2
Long-term liabilities
Cash
$ 240,000
May 31, 20Y2
Accounts receivable
966,000
Operating expenses
Inventory
1,690,000
Other revenue and expense
Estimated returns inventory
22,500
Property, plant, and equipment
Office supplies
13,500
Selling expenses
Prepaid insurance
8,000
Amount Descriptions
Balances, June 1, 20Y1
Office equipment
830,000
Accumulated depreciation-office equipment
550,000
Balances, May 31, 20Y2
Store equipment
3,600,000
Book value-office equipment
Accumulated depreciation-store equipment
1,820,000
Book value-store equipment
Accounts payable
326,000
Dividends
Customer refunds payable
40.000
Gross profit
Salaries payable
41,500
Issued common stock
Note payable (final payment due in 6 years)
300,000
Net income
Common stock
500,000
Net loss
Retained earnings
2,949,100
Note payable (current portion)
Dividends
100,000
Operating income
Sales
11,343,000
Total administrative expenses
Cost of goods sold
7,850,000
Total assets
Sales salaries expense
916,000
Total current assets
Advertising expense
550,000
Total current liabilities
Depreciation expense-store equipment
140,000
Total liabilities
Miscellaneous selling expense
38,000
Total liabilities and stockholders' equity
Office salaries expense
650,000
Total operating expenses
Rent expense
94,000
Total property, plant, and equipment
Depreciation expense-office equipment
50,000
Total selling expenses
Insurance expense
48,000
Total stockholders' equity
Office supplies expense
28,100
Miscellaneous administrative expense
14,500
Interest expense
21,000
2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31,
20Y2. Refer to 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.
.
Clairemont Co.
Statement of Stockholders' Equity
For the Year Ended May 31, 20Y2
Retained
Common Stock
Total
Earnings
2
3 Net income
Dividends
(100,000.00)
(100,000.00)
4
5
6 (Amount Description]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e69f753-b3fc-4bc0-b628-d4cbe17e6b1b%2F30df748c-b642-4349-8fe7-3f09a66b7805%2F47bbyr_processed.png&w=3840&q=75)
Transcribed Image Text:Multiple-step income statement and balance sheet
Labels and Amount Descriptions
Labels
Instructions Labels and Amount Descriptions
Income Statement
Statement of Stockholders' Equity
Administrative expenses
Current assets
Instructions
Current liabilities
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:
For the Year Ended May 31, 20Y2
Long-term liabilities
Cash
$ 240,000
May 31, 20Y2
Accounts receivable
966,000
Operating expenses
Inventory
1,690,000
Other revenue and expense
Estimated returns inventory
22,500
Property, plant, and equipment
Office supplies
13,500
Selling expenses
Prepaid insurance
8,000
Amount Descriptions
Balances, June 1, 20Y1
Office equipment
830,000
Accumulated depreciation-office equipment
550,000
Balances, May 31, 20Y2
Store equipment
3,600,000
Book value-office equipment
Accumulated depreciation-store equipment
1,820,000
Book value-store equipment
Accounts payable
326,000
Dividends
Customer refunds payable
40.000
Gross profit
Salaries payable
41,500
Issued common stock
Note payable (final payment due in 6 years)
300,000
Net income
Common stock
500,000
Net loss
Retained earnings
2,949,100
Note payable (current portion)
Dividends
100,000
Operating income
Sales
11,343,000
Total administrative expenses
Cost of goods sold
7,850,000
Total assets
Sales salaries expense
916,000
Total current assets
Advertising expense
550,000
Total current liabilities
Depreciation expense-store equipment
140,000
Total liabilities
Miscellaneous selling expense
38,000
Total liabilities and stockholders' equity
Office salaries expense
650,000
Total operating expenses
Rent expense
94,000
Total property, plant, and equipment
Depreciation expense-office equipment
50,000
Total selling expenses
Insurance expense
48,000
Total stockholders' equity
Office supplies expense
28,100
Miscellaneous administrative expense
14,500
Interest expense
21,000
2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31,
20Y2. Refer to 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.
.
Clairemont Co.
Statement of Stockholders' Equity
For the Year Ended May 31, 20Y2
Retained
Common Stock
Total
Earnings
2
3 Net income
Dividends
(100,000.00)
(100,000.00)
4
5
6 (Amount Description]
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