The following selected accounts and their current balances appear in the ledger

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 7,856,600

Explanation / Answer

Note : As there is requirement of Multi Step Income Statement only. I had prepared Multi step Income statement for the co. However I didn't understand why the labels are given. If there is another requirement also please let me know in comment box.

Multi-step income statement Clairemont Co. Income Statement for the year ended May 31, 2018 Particulars Amount in $ Sales 11,405,100 Less: Sales discounts 0 Net sales 11,405,100 Less: Cost of goods sold 7,856,600 Gross profit 3,548,500 Less: Operating expenses Selling expenses : Sales Salaries Expense 908,400 Advertising Expense 545,800 Depreciation Expense- Store Equipment 142,200 Miscellanous Selling Expense 41,000 Total Selling expenses   (A) 1,637,400 General and Administrative Expenses : Office Salaries 651,300 Rent Expense 90,800 Depreciation Expense- Office Equipment 40,700 Insurance Expense 47,600 Office Supplies Expense 35,000 Miscellanous Administrative Expense 15,200 Total General and Administrative Expenses (B) 880,600 Total Operating expenses (A+B) 2,518,000 Income from Operations 1,030,500 Other Income and Expenses Interest Expense -21,000 -21,000 Net Income 1,009,500

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