The following selected accounts and their current balances a

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019:

Cash $ 240,000

Accounts Receivable 966,000

Merchandise Inventory 1,690,000

Estimated Returns Inventory 22,500

Office Supplies 13,500

Prepaid Insurance 8,000

Office Equipment 830,000

Accumulated Depreciation-Office Equipment 550,000

Store Equipment 3,600,000

Accumulated Depreciation-Store Equipment 1,820,000

Accounts Payable 326,000

Customer Refunds Payable 40,000

Salaries Payable 41,500

Note Payable (final payment due 2022) 300,000

Kristina Marble, Capital 3,449,100

Kristina Marble, Drawing 100,000

Sales 11,343,000

Cost of Merchandise Sold 7,850,000

Sales Salaries Expense 916,000

Advertising Expense 550,000

Depreciation Expense-Store Equipment 140,000

Miscellaneous Selling Expense 38,000

Office Salaries Expense 650,000

Rent Expense 94,000

Depreciation Expense-Office Equipment 50,000

Insurance Expense 48,000

Office Supplies Expense 28,100

Miscellaneous Administrative Expense 14,500

Interest Expense 21,00

~~Labels

Current assets

Current liabilities

For the Year Ended May 31, 2019

Long-term liabilities

May 31, 2019

Expenses

Other expense

Property, plant, and equipment

~~Amount Descriptions

Gross profit

Income from operations

Increase in owner’s equity

Kristina Marble, capital, June 1, 2018

Kristina Marble, capital, May 31, 2019

Withdrawals

Net income

Net income for the year

Net loss

Total administrative expenses

Total assets

Total current assets

Total current liabilities

Total liabilities

Total liabilities and owner’s equity

Total Expenses

Total property, plant, and equipment

Total selling expenses

~~1.Prepare a statement of owner’s equity. Enter amounts that represent reduction as negative numbers using a minus sign.*

Solution

Part 1 - Preparation of statement of owner\'s equity

Clairemont Co.

Statement of Owner\'s equity

for year ended 31st May, 2019

Net Income For the year

(Part 2)

Part 2 - Income Statement of clairemont co.

Note : Bifurcation of Income statement expenses

Part 3 - Balance sheet of Clairment co.

Note Payable (Current Portion payable in 2020)

Period 3 years (from 2020 to 2022). Hence payable in 2020 = $300000/3 years = $100000

Note Payable

(Long term Portion payable from 2021 to 2022)

Particulars		Amount
Kristina Marble June 1, 2018		$3449100
Net Income For the year (Part 2)	$943400
Kristina Marble Drawings	($100000)
Increase in Owners Equity		$843400
Kristina Marble May 31, 2018		$4292500