The following selected accounts and their current balances appear in the ledger
ID: 2406776 • Letter: T
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 Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Store equipment Accumulated depreciation-store equipment Accounts payable Customer refunds payable Salaries payable Note payable (final payment due 2024) Common stock Retained earnings Dividends Sales Cost of goods sold S 238,400 960,300 1,644,400 20,900 22,200 15,100 825,800 551,100 3,603,000 1,819,400 356,700 48,800 44,900 285,000 507,300 2,822,800 108,200 11,405,100 7,856,600Explanation / Answer
A)
B)
C)
D)
An income statement, also called an earnings report or a profit-and-loss statement, shows a company's fiscal operations during a specified time period. These income statements, typically produced quarterly or annually, display the company's revenues, expenses and the difference between the two. Companies with specific business structures, such as corporations, must produce a multiple-step income statement, while other companies have the option of presenting a single-step income statement.
The account form of the balance sheet provides information in an essentially horizontal format. The account form has two columns, set side by side. The left column lists the company's assets. The final line on the left side of the sheet provides the total value of all assets. The column on the right lists both liabilities and equity, with liabilities coming first. The final line on the right provides the total combined value of liabilities and equity whereas The report form of the balance sheet provides information in a vertical format -- essentially one column that goes the full width of the page. The report form starts with assets, providing a total value at the end of the assets section. It then lists liabilities and finishes with equity, with the final line of the report providing the total combined value of liabilities and equity
Multi step income statement
Income statement that shows immediate balances. segregates the operating revenues and operating expenses from the non-operating revenues, non-operating expenses, gains, and losses. It also shows the gross profit (net sales minus the cost of goods sold). This is what we use for merchandising businesses.
Report form
Balance sheet presents assets, liabilities, and owners' equity in downward sequence
B)
CLAIREMONT COMPANY RETAINED EARNINGS STATEMENT FOR THE YEAR ENDED MAY 31, 2018 $ $ RETAINED EARNINGS, JUNE 1, 2017 2822800 NET INCOME 1002300 DIVIDENDS (108200) CHANGE IN RETAINED EARNINGS 894100 RETAINED EARNINGS, MAY 31, 2018 3716900C)
CLAIREMONT CO. BALANCE SHEET 31-May-18 $ $ $ ASSETS CURRENT ASSETS 238,400 CASH 960,300 ACCOUNTS RECEIVABLE 1,644,400 INVENTORY 20,900 ESTIMATED RETURNS INVENTORY 22,200 OFFICE SUPPLIES 15,100 PREPAID INSURANCE 2901300 TOTAL CURRENT ASSETS PROPERTY,PLANT AND EQUIPMENT: OFFICE EQUIPMENT 825800 ACCUMULATED DEPRECIATION-OFFICE EQUIPMENT 551100 STORE EQUIPMENT 3603000 ACCUMULATED DEPRECIATION-STORE EQUIPMENT 1819400 TOTAL PROPERTY, PLANT AND EQUIPMENT 2058300 TOTAL ASSETS 4959600 LIABILITIES CURRENT LIABILITIES: ACCOUNTS PAYABLE 356700 CUSTOMER REFUNDS PAYABLE 48800 SALARIES PAYABLE 44900 NOTE PAYABLE (CURRENT PORTION) 56000 TOTAL CURRENT LIABILITIES 506400 LONG TERM LIABILITIES: NOTE PAYABLE (FINAL PAYMENT DUE 2024) 229000 TOTAL LIABILITIES 735400 STOCKHOLDERS EQUITY COMMON STOCK 507300 RETAINED EARNINGS 3716900 TOTAL STOCKHOLDERS EQUITY 4224200 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 4959600D)
An income statement, also called an earnings report or a profit-and-loss statement, shows a company's fiscal operations during a specified time period. These income statements, typically produced quarterly or annually, display the company's revenues, expenses and the difference between the two. Companies with specific business structures, such as corporations, must produce a multiple-step income statement, while other companies have the option of presenting a single-step income statement.
The account form of the balance sheet provides information in an essentially horizontal format. The account form has two columns, set side by side. The left column lists the company's assets. The final line on the left side of the sheet provides the total value of all assets. The column on the right lists both liabilities and equity, with liabilities coming first. The final line on the right provides the total combined value of liabilities and equity whereas The report form of the balance sheet provides information in a vertical format -- essentially one column that goes the full width of the page. The report form starts with assets, providing a total value at the end of the assets section. It then lists liabilities and finishes with equity, with the final line of the report providing the total combined value of liabilities and equity
Multi step income statement
Income statement that shows immediate balances. segregates the operating revenues and operating expenses from the non-operating revenues, non-operating expenses, gains, and losses. It also shows the gross profit (net sales minus the cost of goods sold). This is what we use for merchandising businesses.
Report form
Balance sheet presents assets, liabilities, and owners' equity in downward sequence
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