The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $238,400
Accounts receivable 965,200
Inventory 1,771,300
Estimated returns inventory 21,900
Office supplies 17,900
Prepaid insurance 3,300
Office equipment 821,200
Accumulated depreciation-office equipment 544,100
Store equipment 3,601,000
Accumulated depreciation-store equipment 1,816,900
Accounts payable 364,800
Customer refunds payable 44,100
Salaries payable 37,400
Note payable (final payment due in 6 years) 300,000
Common stock 493,800
Retained earnings 2,999,000
Dividends 91,700
Sales 11,320,600
Cost of goods sold 7,851,900
Sales salaries expense 898,300
Advertising expense 559,200
Depreciation expense-store equipment 145,000
Miscellaneous selling expense 39,400
Office salaries expense 648,200
Rent expense 90,800
Depreciation expense-office equipment 47,100
Insurance expense 45,900
Office supplies expense 28,000
Miscellaneous administrative expense 6,300
Interest expense 28,700
Required:
1. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. 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. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
4. Briefly explain how multiple-step and single-step income statements differ.