275 Chapter 5 Accounting for Merchandising Businesses Obj. 3 PR 5-5A Multiple-step income statement and balance sheet et income The following selected accounts and their current balances appear in the ledger of $943,400 Clairemont Co. for the fiscal year ended May 31, 2018: $2,949,100 100,000 11,343,000 7,850,000 916,000 550,000 Retained Earnings Cash Accounts Recelvable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- $ 240,000 966,000 Dividends 1690,000 Sales BERAL LEDGER Cost of Goods Sold 22,500 13,500 Sales Salaries Expense 8,000 Advertising Expense 830,000 Depreciation Expense- 140,000 38,000 650,000 94,000 Store Equipment 550,000Miscellaneous Selling Expense Office Equipment Store Equipment Accumulated Depreciation- Office Salaries Expense Rent Expense Depreciation Expense- 3,600,000 1,820,000 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 326,000 40,000 41,500 50,000 48,000 28,100 14,500 21,000 (final payment due 2024) Common Stock 300,000 500,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. Briefly explain how multiple-step and single-step income statements differ