The following selected accounts and their current balances appear in the ledger Multiple-step ino me statement and balane me 100 Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Retained Earnings $ 2,949,100 Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable 966,000 1,690,000 Sales Dividends 100,000 11,343,000 22,500 Cost of Goods Sold 7,850,000 13,500 8,000 830,000 Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense 916,000 550,000 140,000 550,000 38,000 3,600,000 650,000 94,000 1,820,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 326,000 40,000 50,000 Customer Refunds Payable Salaries Payable Note Payable (final payment due 2024) 48,000 41,500 28,100 14,500 300,000 21,000 Common Stock 500,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4. Briefly explain how multiple-step and single-step income statements differ

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following selected accounts and their current balances appear in the ledger Multiple-step ino me statement and balane me 100 Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Retained Earnings $ 2,949,100 Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable 966,000 1,690,000 Sales Dividends 100,000 11,343,000 22,500 Cost of Goods Sold 7,850,000 13,500 8,000 830,000 Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense 916,000 550,000 140,000 550,000 38,000 3,600,000 650,000 94,000 1,820,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 326,000 40,000 50,000 Customer Refunds Payable Salaries Payable Note Payable (final payment due 2024) 48,000 41,500 28,100 14,500 300,000 21,000 Common Stock 500,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4. Briefly explain how multiple-step and single-step income statements differ

Chapter 5 Accounting for Merchandising Businesses
25
iau solle biR 5 Multiple-step ino me statement and balane sheet
Obj. 3
1. Net income
$943,400
S dloo
The following selected accounts and their current balances appear in the ledger of
Clairemont Co. for the fiscal year ended May 31, 2018:
Cash
$ 240,000
Retained Earnings
$ 2,949,100
Accounts Receivable
966,000
Dividends
100,000
GENERAL LEDGER yOqrro Inventory
1,690,000
of Sales
11,343,000
Estimated Returns Inventory
31
22,500 Cost of Goods Sold
00
Sales Salaries Expense
7,850,000
Office Supplies
13,500
916,000
Instruc Prepaid Insurance
Office Equipment
8,000
Advertising Expense
550,000
me prieo d nemate)
lo ogbsl sili ni r
830,000
Depreciation Expense-
Store Equipment
Miscellaneous Selling Expense
Accumulated Depreciation-
140,000
Smoon
Office Equipment
B 62 Store Equipment
550,000
38,000
3,600,000
Office Salaries Expense
650,000
Accumulated Depreciation-
Store Equipment
Accounts Payable
290nawollCustomer Refunds Payable
Rent Expense
94,000
Depreciation Expense-
326,000 Office Equipment
40,000 v Insurance Expense
Office Supplies Expense
1,820,000
LATE
HA 50,000
48,000
Salaries Payable
Note Payable
41,500
28,100
00,8
000,E
Miscellaneous Administrative Exp.
14,500
(final payment due 2024) 021
02.A
300,000
Interest Expense
21,000
Common Stock
500,000
0.0
Instructions
ORchsiqa0 berslumu
1. Prepare a multiple-step income statement.
2. Prepare a retained earnings statement.
20
3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.
4.
Briefly explain how multiple-step and single-stėp income statements differ.
Transcribed Image Text:Chapter 5 Accounting for Merchandising Businesses 25 iau solle biR 5 Multiple-step ino me statement and balane sheet Obj. 3 1. Net income $943,400 S dloo The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Retained Earnings $ 2,949,100 Accounts Receivable 966,000 Dividends 100,000 GENERAL LEDGER yOqrro Inventory 1,690,000 of Sales 11,343,000 Estimated Returns Inventory 31 22,500 Cost of Goods Sold 00 Sales Salaries Expense 7,850,000 Office Supplies 13,500 916,000 Instruc Prepaid Insurance Office Equipment 8,000 Advertising Expense 550,000 me prieo d nemate) lo ogbsl sili ni r 830,000 Depreciation Expense- Store Equipment Miscellaneous Selling Expense Accumulated Depreciation- 140,000 Smoon Office Equipment B 62 Store Equipment 550,000 38,000 3,600,000 Office Salaries Expense 650,000 Accumulated Depreciation- Store Equipment Accounts Payable 290nawollCustomer Refunds Payable Rent Expense 94,000 Depreciation Expense- 326,000 Office Equipment 40,000 v Insurance Expense Office Supplies Expense 1,820,000 LATE HA 50,000 48,000 Salaries Payable Note Payable 41,500 28,100 00,8 000,E Miscellaneous Administrative Exp. 14,500 (final payment due 2024) 021 02.A 300,000 Interest Expense 21,000 Common Stock 500,000 0.0 Instructions ORchsiqa0 berslumu 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 20 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4. Briefly explain how multiple-step and single-stėp income statements differ.
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