BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 6, Problem 6.6APR
Textbook Problem

Single-step income statement

Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2019, are presented in Problem 6-5A.

Instructions

1.    Prepare a single-step income statement in the format shown in Exhibit 12.

2.    Prepare closing entries as of May 31, 2019-

Expert Solution

(1)

To determine

Single-step income statement format in which a single subtotal of all revenue items are listed in one column and a single subtotal of all expense items including cost of goods sold are listed in another column. Thus, the subtotal of all expense items is deducted from the subtotal of all revenue items to arrive at the net income at the bottom of the statement.

To Prepare: The income statement of Company C for the year ended May 31, 2019.

Explanation of Solution

The following is the income statement of Company C.

Company C

Income Statement

For the Year Ended May 31, 2019

Particulars Amount ($) Amount ($)
Sales 11,343,000
Less: Expenses:
         Cost of merchandise s...
Expert Solution

(2)

To determine

Closing entries: These refers to the journal entries that are recorded at the end of an each accounting period. It closes all revenue accounts earned, and all expenses account incurred during the current accounting year to the company’s capital account.

To Record: The closing entries of Company C.

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Chapter 6 Solutions

Accounting
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