counting for Merchandising Businesses 275 PR 5-5A Multiple-step income statement and balance sheet Obj. 3 The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $ 240,000 Retained Earnings $ 2,949,100 Accounts Receivable 966,000 Dividends 100,000 Inventory 1,690,000 Sales 11,343,000 Estimated Returns Inventory 22,500 Cost of Goods Sold 7,850,000 Office Supplies 13,500 Sales Salaries Expense 916,000 Prepaid Insurance 8,000 Advertising Expense 550,000 Office Equipment 830,000 Depreciation Expense- Accumulated Depreciation- Store Equipment 140,000 Office Equipment 550,000 Miscellaneous Selling Expense 38,000 Store Equipment 3,600,000 Office Salaries Expense 650,000 Accumulated Depreciation- Rent Expense 94,000 Store Equipment 1,820,000 Depreciation Expense- Accounts Payable 326,000 Office Equipment 50,000 Customer Refunds Payable 40,000 Insurance Expense 48,000 Salaries Payable 41,500 Office Supplies Expense 28,100 Note Payable Miscellaneous Administrative Exp. 14,500 (final payment due 2024) 300,000 Interest Expense 21,000 Common Stock 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. 4. Briefly explain how multiple-step and single-step income statements differ