The following selected accounts and their current balances appear in the ledger

Question

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:

* 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.

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. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

(a) Which type of income statement shows intermediate balances?

Multiple-step

Single-step

(b) Which type of balance sheet presents assets, liabilities, and stockholders’ equity in a downward sequence?

Account form

Report form

Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Operating expenses Other revenue and expense Property, plant, and equipment Selling expenses Amount Descriptions Change in retained earnings Gross profit Income from operations Dividends Net income Net income for the year Net loss Net loss for the year Note payable (current portion) Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Total administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders’ equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders’ equity

Explanation / Answer

Requirement 1 Multi stepIncome Statement for the year ended May 31. 2018 Amount Descriptions Amount in $ Amount in $ Sales Revenue 11371300 Cost of goods sold 7854900 Gross profit 3516400 Operating Expenses Selling Expenses Sales Salaries Expense 917700 Advertising expense 542000 Depreciation Store Equipment 148000 Miscellaneous selling expense 46800 Total selling expense 1654500 Administrative Expenses Office Salaries Expense 654600 Rent expense 91700 Depreciation -Office Equipment 43600 Insurance Expense 42400 Office supplies expense 22800 Miscellaneous adminstrative expense 6600 Total adminstrative expense 861700 Total Operating Expenses 2516200 Income from Operations 1000200 Other Income and expenses Interest Expense -14000 Net Income 986200 Requirement 2 Statement of retained earnings Retained earnings June 1, 2017 3010700 Net Income for the year 986200 Dividends -97100 Retained earnings May 31, 2018 3899800 Requirement 3 Balance Sheet Assets Current Asset Cash 241300 Accounts Receivable 975200 Inventory 1810700 Add : Estimated return Inventory 21000 1831700 Office supplies 22300 Prepaid Insurance 11400 Totaal current asset 3081900 Property, Plant and equipment Office Equipment 833700 Less : Accumulated Depreciation 540000 293700 Store Equipment 3606400 Less : Accumulated Depreciation 1822200 1784200 Total Assets 5159800 Liabilities Current Liabilities Accounts Payable 364600 Customer Refunds Payable 40600 Salaries payable 42700 Note Payable(current portion) 55000 Total of current liabilities 502900 Long Term Liabilities Notes Payable 262000 Total liabilities 764900 Stockholder's equity Common stock 495100 Retained earnings December 31 3899800 Total stock holder's Equity 4394900 Total liabilities & stockholder's equity 5159800 Requirement 4 Difference between Multi step and single step Income statement The main difference between above two are that the Multi step income statement gives information about gross profit(Sales-cost of goods sold) and operating profit (difference between gross profit and operating expenses) while its counterpart the signle step income statement does not give these information. Difference between Report form and account form balance sheet Report form presents the balance sheet data vertically, while the account form presents that balance sheet in horizontal form As per the chegg policy, we are supposed answer the maximum of four sub-parts of a question Thank You

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.