The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016:

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
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

(b) How report-form and account-form balance sheets differ?

Transcribed Image Text:

240,000 arble, Drawing Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance $ 100,000 11,343,000 7,850,000 916,000 550,000 966,000 Sales 1712,500 Cost of Merchandise Sold 13,500 Sales Salaries Expense 8,000 Advertising Expense 30,000 Depreciation Expense- Accumulated Depreciation Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Depreciation Expense- 140,000 38,000 Office Equipment Store Equipment Accumulated Depreciain 550,000 600,000 Office Sa 4,000 Store Equipment Accounts Payable Salaries Payable Note Payable 1,820,000 366,000 Office Equipment Insurance Expense Office Supplies Expense 50,000 48,000 28,100 4D 21,000 41,500 (final payment due 2022) Kristina Marble, Capital 300,000 Miscellaneous Administrative Exp 3,449,100 Interest Expense