$ 240,000 966,000 1,690,000 Estimated Returns Inventory 22,500 PR 5-5A Multiple-step income statement and balance sheet Obj. 4 The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash Accounts Receivable Inventory $ 500,000 2,949,100 100,000 11,343,000 Common Stock Retained Earnings Dividends Sales Office Supplies 13,500 Cost of Goods Sold 7,850,000 Prepaid Insurance 8,000 Sales Salaries Expense 916,000 Office Equipment 830,000 Advertising Expense 550,000 Accumulated Depreciation- Depreciation Expense- Office Equipment 550,000 Store Equipment 140,000 Store Equipment 3,600,000 Miscellaneous Selling Expense 38,000 Accumulated Depreciation- Office Salaries Expense 650,000 Store Equipment 1,820,000 Rent Expense 94,000 Accounts Payable 321,000 Depreciation Expense- Salaries Payable 41,500 Office Equipment 50,000 Customer Refunds Payable 40,000 Insurance Expense 48,000 Estimated Coupons Payable 5,000 Office Supplies Expense 28,100 Note Payable Miscellaneous Administrative Exp. 14,500 (final payment due in 6 years) 300,000 Interest Expense 21,000 Instructions Chapter 5 Accounting for Retail Businesses 297 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4. Briefly explain how multiple- and single-step income statements differ.