Pr 6 5a accounting

Pr. 6-5A

Problem 6-5A # Incorrect N-box and B-box entries COUNTIF(B15:G24,"~*")

Name: 0

Section: # N-box Incorrects due to blanks COUNTIF(B15:AT24," ")

13

Score: 0% # N-box +B-box corrects COUNTIF(B15:AT24," ")

0

Key Code: [Key code here] Total SUM(AD13:AD15)

Instructions 13

Answers are entered in the cells with gray backgrounds. Percentage =(AD16-AD13-AD14)/AD16

Cells with non-gray backgrounds are protected and cannot be edited. 0%

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. Notes:

If number-entry box is blank (this would be an incorrect answer for N-boxes), error check returns two spaces, " "

1. CLAIREMONT CO. For the Year Ended May 31, 2019 If number-entry or blank-entry box is incorrect, returns "*"

Income Statement May 31, 2019

If number-entry or blank-entry box is correct, returns single space, " "

Use data verification to set data entry to whole number >= 0, and use drop-downs for lables and names, so that students can't enter a space in a box and have it counted as correct.

Sales Advertising expense

Cost of merchandise sold Cost of merchandise sold

Gross profit Depreciation expense—office equipment

Expenses: Depreciation expense—store equipment

Selling expenses: Insurance expense

cpence: List these expenses in numerical order, largest to smallest.

Peggy Hussey: List these expenses in numerical order, largest to smallest. Enter as positive amounts. Interest expense

Miscellaneous administrative expense

Miscellaneous selling expense

Office salaries expense

Total selling expenses

cpence: Enter as a positive amount. Office supplies expense

Administrative expenses: Rent expense

Peggy Hussey: List the expenses in numerical order, largest to smallest. Sales

Sales salaries expense

Total administrative expenses

Craig Pence: Enter a positive amount.

Total expenses

Income from operations

Other expense:

Net income

2. CLAIREMONT CO.

Statement of Owner's Equity

Decrease in owner's equity

Kristina Marble, capital, June 1, 2018 Increase in owner’s equity

Peggy Hussey: Enter the item that increases owner's equity first. (You will need information from part 1.) Withdrawals

Mark Sears: Enter the item that decreases owner's equity as a negative value. Net income for the year

Net loss for the year

Kristina Marble, capital, May 31, 2019

3. CLAIREMONT CO.

Balance Sheet

Accounts receivable

Accounts payable

Assets Cash

Current assets: Customer refunds payable

cpence: List current assets in order of liquidity (most liquid first).

cpence: List current assets in order of liquidity (most liquid first). Less accumulated depreciation

Kristina Marble, capital

Kristina Marble, drawing

Estimated returns inventory Merchandise inventory

cpence: List supplies ahead of prepaid insurance. Note payable (current portion)

Note payable (final payment due 2022)

Total current assets Office equipment

Property, plant, and equipment: Office supplies

Office equipment Prepaid insurance

Peggy Hussey: Enter the carrying value of the office equipment. Salaries payable

Store equipment

Store equipment

Peggy Hussey: Enter the carrying value of the store equipment.

Total property, plant, and equipment

Total assets

Liabilities

Current liabilities:

cpence: List current liabilities in descending order by amount.

Note payable (current portion)

Total current liabilities

Long-term liabilities:

Total liabilities

Owner's Equity

Kristina Marble, capital

Total liabilities and owner's equity

4. (Key essay answer here)

Sol

Problem 6-5A

Name: Solution

Section:

Scoring: ON

Instructions

Answers are entered in the cells with gray backgrounds.

Cells with non-gray backgrounds are protected and cannot be edited.

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded.

1. CLAIREMONT CO. For the Year Ended May 31, 2019

Income Statement May 31, 2019

For the Year Ended May 31, 2019

Sales $ 11,343,000

Cost of merchandise sold 7,850,000 Advertising expense

Gross profit $ 3,493,000 Cost of merchandise sold

Expenses: Depreciation expense—office equipment

Selling expenses: Depreciation expense—store equipment

Sales salaries expense

cpence: List these expenses in numerical order, largest to smallest. $ 916,000

Peggy Hussey: List these expenses in numerical order, largest to smallest. Enter as positive amounts. Insurance expense

Advertising expense 550,000 Interest expense

Depreciation expense—store equipment 140,000 Miscellaneous administrative expense

Miscellaneous selling expense 38,000 Miscellaneous selling expense

Total selling expenses $ 1,644,000

cpence: Enter as a positive amount. Office salaries expense

Administrative expenses: Office supplies expense

Office salaries expense $ 650,000 Rent expense

Rent expense 94,000 Sales

Depreciation expense—office equipment 50,000 Sales salaries expense

Insurance expense 48,000

Office supplies expense 28,100

Miscellaneous administrative expense 14,500

Total administrative expenses 884,600

Craig Pence: Enter a positive amount.

Total expenses 2,528,600

Income from operations $ 964,400

Other expense:

Interest expense 21,000

Net income $ 943,400

2. CLAIREMONT CO.

Statement of Owner's Equity

For the Year Ended May 31, 2019

Increase in owner’s equity

Kristina Marble, capital, June 1, 2018 $ 3,449,100 Withdrawals

Net income for the year $ 943,400

Peggy Hussey: Enter the item that increases owner's equity first. (You will need information from part 1.) Net income for the year

Withdrawals (100,000) Decrease in owner's equity

Increase in owner’s equity 843,400

Kristina Marble, capital, May 31, 2019 $ 4,292,500

3. CLAIREMONT CO.

Balance Sheet

May 31, 2019 Accounts receivable

Accounts payable

Assets Cash

Current assets: Customer refunds payable

Cash

cpence: List current assets in order of liquidity (most liquid first). $ 240,000

cpence: List current assets in order of liquidity (most liquid first). Less accumulated depreciation

Accounts receivable 966,000 Kristina Marble, capital

Merchandise inventory 1,690,000 Kristina Marble, drawing

Estimated returns inventory 22,500 Merchandise inventory

Office supplies

cpence: List supplies ahead of prepaid insurance. 13,500 Note payable (current portion)

Prepaid insurance 8,000 Note payable (final payment due 2022)

Total current assets $ 2,940,000 Office equipment

Property, plant, and equipment: Office supplies

Office equipment $ 830,000 Prepaid insurance

Less accumulated depreciation 550,000 $ 280,000

Peggy Hussey: Enter the carrying value of the office equipment. Salaries payable

Store equipment

Store equipment $ 3,600,000

Less accumulated depreciation 1,820,000 1,780,000

Peggy Hussey: Enter the carrying value of the store equipment.

Total property, plant, and equipment 2,060,000

Total assets $ 5,000,000

Liabilities

Current liabilities:

Accounts payable

cpence: List current liabilities numerically, largest to smallest. $ 326,000

Salaries payable 41,500

Customer refunds payable 40,000

Note payable (current portion) 50,000

Total current liabilities: $ 457,500

Long-term liabilities:

Note payable (final payment due 2022) 250,000

Total liabilities $ 707,500

Owner's Equity

Kristina Marble, capital 4,292,500

Total liabilities and owner's equity $ 5,000,000

4. The multiple-step form of income statement contains various sections for revenues and expenses, with intermediate balances, and concludes with net income. In the single-step form, the total of all expenses is deducted from the total of all revenues. There are no intermediate balances.