Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2019, are presented in Problem 6-5A.

Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2019, are presented in Problem 6-5A.

Instructions

1. Prepare a single-step income statement in the format shown in Exhibit 12.

2. Prepare closing entries as of May 31, 2019.

Answer:

1.

Sales$11,343,000

Expenses:

Cost of merchandise sold $7,850,000

Selling expenses1,644,000

Administrative expenses884,600

Interest expense21,000

Total expenses10,399,600

Net income$ 943,400

2.  2019

 May 31 Sales11,343,000

Cost of Merchandise Sold7,850,000

Sales Salaries Expense916,000

Advertising Expense550,000

Depreciation Expense—Store Equipment 140,000

Miscellaneous Selling Expense38,000

Office Salaries Expense650,000

Rent Expense94,000

Depreciation Expense—Office Equipment 50,000

Insurance Expense48,000

Office Supplies Expense28,100

Miscellaneous Administrative Expense 14,500

Interest Expense21,000

Kristina Marble, Capital943,400

31 Kristina Marble, Capital 100,000

Kristina Marble, Drawing100,000