Chapter 5 Accounting for Merchandising Businesses 275 PR 5-5A Multiple-step income statement and balance sheet et income The following selected accounts and their current balances appear in the $943,400 Clairemont Co. for the fiscal year ended May 31, 2018: Obj. 3 ledger of Cash $240,000 966,000 1,690,000 22,500 13,500 8,000 830,000 Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense- $2,949,100 100,000 Accounts Receivable ERAL LEDGER Inventory 11,343,000 Estimated Returns Inventory 7,850,000 916,000 550,000 Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Store Equipment Office Equipment Store Equipment Accumulated Depreciation- 140,000 38,000 650,000 94,000 550,000Miscellaneous Selling Expense 3,600,000Office Salaries Expense Rent Expense Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable (final payment due 2024) 1,820,000 Depreciation Expense- 326,000 Office Equipment 50,000 48,000 28,100 14,500 21,000 0,000Insurance Expense 41,500 Office Supplies Expense Miscellaneous Administrative Exp 00,000 Interest Expense 500,000 Common Stock 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 s differ. 4. Briefly explain how multiple-step and single-step income statement