Chapter 5 Accounting for Merchandising Businesses 275 PR 5-5A Multiple-step income statement and balance sheet Obj. 3 ome The following selected accounts and their current balances appear in the ledger of 400 Clairemont Co. for the fiscal year ended May 31, 2018: Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- s 2,949,100 100,000 11,343,000 7,850,000 916,000 $ 240,000 Retained Earnings 966,000 Dividends ,690,000 Sales LEDGER 22,500 Cost of Goods Sold 13,500 Sales Salaries Expense 8,000Advertising Expense 830,000 Depreciation Expense- 550,000 Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Depreciation Expense- 140,000 38,000 650,000 94,000 Office Equipment Store Equipment Accumulated Depreciation- 550,000 3,600,000 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable 1,820,000 326,000 40,000 41,500 Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. 50,000 48,000 28,100 14,500 21,000 300,000 nterest Expense (final payment due 2024) Common Stock 500,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. t portion of the note payable is $50,000. Briefly explain how multiple-step and single-step income statements