eBook Print Item Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $127,800 Retained Earnings 563,000 Accounts Receivable 340,600 Dividends 76,500 Inventory 388,300 Sales $4,679,000 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,706,500 Office Supplies 12,000 Sales Salaries Expense 761,100 Prepaid Insurance 9,300 Advertising Expense 209,300 Depreciation Expense- Office Equipment 281,100 Store Equipment 40,800 Accumulated Depreciation- Miscellaneous Selling Expense 17,900 Office Equipment 191,000 Store Equipment 877,600 Office Salaries Expense 415,500 Accumulated Depreciation- Rent Expense 61,400 Store Equipment 281,100 Depreciation Expense- Accounts Payable 194,500 Office Equipment 30,700 Customer Refunds Payable 40,000 Insurance Expense 19,000 Salaries Payable 12,400 Office Supplies Expense 11,300 Note Payable Miscellaneous Administrative Exp. 8,200 (final payment due 2024) 407,500 12,400 Common Stock 61,300 Interest Expense Previous Next eBook Sales Cost of goods sold Gross profit Expenses: Selling expenses: Print Item S 4,679,000 2,706,500 $ 1,972,500 Sales salaries expense 761,100 Advertising expense 209,300 Depreciation expense-store equipment X 40,800 Miscellaneous selling expense 17,900 Total selling expenses $ 1,029,100 Administrative expenses:" Office salaries expense S 415,500 Rent expense 61,400 V Insurance expense 19,000 Depreciation expense-office equipment 30,700 Office supplies expense 11,300 Miscellaneous administrative expense 8,200 546,100 Total administrative expenses 1,575,200 Total operating expenses 2. Prepare a retained earnings statement. Clairemont Co. Retained Earnings Statement For the Year Ended Hay 31, 2018 Retained earnings, June 1, 2017 Net income for the year Less dividends Increase in retained earnings Retained earnings, May 31, 2018 563,000 384,900 76,500 308,400 871,400 3. Prepare a balance sheet, assuming that the current portion of the note payable is $20,375. Assets Clairemont Co. Balance Sheet May 31, 2018 < Assets Current assets: Cash Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Total current assets 127,800 340,600 388,300 22,500 12,000 9,300 900,500 Property, plant and equipment: Office equipment 281,100 Less: Accumulated depreciation 191,000 90,100 Store equipment 877,600 Less: Accumulated depreciation 281,100 V 596,500 Total property, plant and equipment 686,600 Total assets $ 1,587,100 Liabilities Current liabilitions eBook Total assets Print Item Liabilities Current liabilities: Accounts payable Salaries payable Customer refunds payable Note payable (current portion) Total current liabilities Long-term liabilities: Note payable (final payment due 2024) Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 194,500 12,400 40,000 61,300 X 1,587,100