Problem 6-5A due in 18 hours

WRD27e_PR06-5A.xlsx

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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.