Maurice Tutor
$15/per page/Negotiable
Multiple-step income statement and report form of balance sheet                   OBJ. 3 The following selected accounts and their current balances appear in the ledger  of Clairemont Co. for the fiscal year ended May 31,   2016:
Â
|
Cash |
$ Â 240,000 |
Dividends |
$Â Â Â 100,000 |
|
Accounts Receivable |
966,000 |
Sales |
11,343,000 |
|
Merchandise Inventory |
1,712,500 |
Cost of Merchandise Sold |
7,850,000 |
|
Office Supplies |
13,500 |
Sales Salaries Expense |
916,000 |
|
Prepaid Insurance |
8,000 |
Advertising Expense |
550,000 |
|
Office Equipment |
830,000 |
Depreciation Expense— |
 |
|
Accumulated  Depreciation— |
 |
Store Equipment |
140,000 |
|
Office Equipment |
550,000 |
Miscellaneous Selling Expense |
38,000 |
|
Store Equipment |
3,600,000 |
Office Salaries Expense |
650,000 |
|
Accumulated  Depreciation— |
 |
Rent Expense |
94,000 |
|
Store Equipment |
1,820,000 |
Depreciation Expense— |
 |
|
Accounts Payable |
366,000 |
Office Equipment |
50,000 |
|
Salaries Payable |
41,500 |
Insurance Expense |
48,000 |
|
Note Payable |
 |
Office Supplies Expense |
28,100 |
|
(final payment due 2022) |
300,000 |
Miscellaneous Administrative Exp. |
14,500 |
|
Common Stock |
500,000 |
Interest Expense |
21,000 |
|
Retained Earnings |
2,949,100 |
 |
 |
Instructions
1.    Prepare a multiple-step income statement.
2.    Prepare a retained earnings statement.
3.    Prepare a report form of balance sheet, assuming that the current portion of the note payable is $50,000.
4.    Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.
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