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 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 2024) 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 single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. If there is a net loss, enter that amount as a negative number using a minus sign.* 2. Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.* 3. Prepare balance sheet, assuming that the current portion of the note payable is $50,000. Negative amount should be indicated by the minus sign.* 4. Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account titles. * 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. CHART OF ACCOUNTS Clairemont Co. General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 217 Note Payable (current portion) 218 Note Payable (final payment due 2024) 219 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Sales Salaries Expense 527 Office Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 540 Miscellaneous Selling Expense 541 Miscellaneous Administrative Expense 710 Interest Expense LabelsCurrent assetsCurrent liabilitiesExpensesFor the Year Ended May 31, 2018Long-term liabilitiesMay 31, 2018Property, plant, and equipmentAmount DescriptionsAdministrative expensesChange in retained earningsDividendsNet incomeNet income for the yearNet lossNet loss for the yearPlus dividendsRetained earnings, June 1, 2017Retained earnings, May 31, 2018Selling expensesTotal assetsTotal expensesTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and stockholders’ equityTotal property, plant, and equipmentTotal stockholders’ equity 1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement headings. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If there is a net loss, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

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 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 2024) 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 single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. If there is a net loss, enter that amount as a negative number using a minus sign.* 2. Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.* 3. Prepare balance sheet, assuming that the current portion of the note payable is $50,000. Negative amount should be indicated by the minus sign.* 4. Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account titles. * 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. CHART OF ACCOUNTS Clairemont Co. General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 217 Note Payable (current portion) 218 Note Payable (final payment due 2024) 219 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Sales Salaries Expense 527 Office Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 540 Miscellaneous Selling Expense 541 Miscellaneous Administrative Expense 710 Interest Expense LabelsCurrent assetsCurrent liabilitiesExpensesFor the Year Ended May 31, 2018Long-term liabilitiesMay 31, 2018Property, plant, and equipmentAmount DescriptionsAdministrative expensesChange in retained earningsDividendsNet incomeNet income for the yearNet lossNet loss for the yearPlus dividendsRetained earnings, June 1, 2017Retained earnings, May 31, 2018Selling expensesTotal assetsTotal expensesTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and stockholders’ equityTotal property, plant, and equipmentTotal stockholders’ equity 1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement headings. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If there is a net loss, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

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
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 2024)	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 single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. If there is a net loss, enter that amount as a negative number using a minus sign.*
2.	Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.*
3.	Prepare balance sheet, assuming that the current portion of the note payable is $50,000. Negative amount should be indicated by the minus sign.*
4.	Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account titles.

* 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.

CHART OF ACCOUNTS

Clairemont Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
217	Note Payable (current portion)
218	Note Payable (final payment due 2024)
219	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Sales Salaries Expense
527	Office Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
540	Miscellaneous Selling Expense
541	Miscellaneous Administrative Expense
710	Interest Expense

LabelsCurrent assetsCurrent liabilitiesExpensesFor the Year Ended May 31, 2018Long-term liabilitiesMay 31, 2018Property, plant, and equipmentAmount DescriptionsAdministrative expensesChange in retained earningsDividendsNet incomeNet income for the yearNet lossNet loss for the yearPlus dividendsRetained earnings, June 1, 2017Retained earnings, May 31, 2018Selling expensesTotal assetsTotal expensesTotal current assetsTotal current liabilitiesTotal liabilitiesTotal liabilities and stockholders’ equityTotal property, plant, and equipmentTotal stockholders’ equity

1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement headings. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If there is a net loss, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

23
24 (Label)
25
26
27
Stockholders' Equity
28
29
30
31
4. Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account fitles.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
Closing Entries
4
10
11
12
13
14
15
16
17
18
19
20

Clairemont Co.
Income Statement
(Label)
2 (Label)
Clairemont Co.
Retained Earnings Statement
(Label)
Prepare 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. Negative amount should be indicated by the minus sign. A colon (:) will automatically appear if it is required.
Clairemont Co.
Balance Sheet
(Label)
Assets
2(Label)
4
10 (Label)
11
12
13
14
15
16
17
Liabilities
13 (Label)
19
20
21
22

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.