Instructions Journalize the August tran sactions for (1) Summit Company and (2) Beartooth Co. OBJ. 3 PR 6-5A Multiple-step income statement and report form of balance sheet of The following selected accounts and their current balances appear in the ledger Clairemont Co. for the fiscal year ended May 51, 2016 Clairemont Co. for the fiscal year ended May 31, 2016: Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation $ 240,000 966,000 1,712,500 13,500 8,000 830,000 Kristina Marble, Drawing Sales Cost of Merchandise Solo Sales Salaries Expense Advertising Expense Depreciation Expense- $ 100,000 11,343,000 7,850,000 916,000 550,000 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 1,820,000 Store Equipment Accounts Payable Salaries Payable Note Payable Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 50,000 48,000 41,500 (final payment due 2022) Kristina Marble, Capital 300,000 3,449,100 14,500 21,000 Instructions 1. Prepare a multiple-step income statement. PR 6-5A Multiple-step income statement The following selected accounts and their current balances appear in Clairemont Co. for the fiscal year ended May 31, 2016: Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- S 240,000 966,000 1,712,500 13,500 8,000 830,000 Kristina Marble, Drawing Sales Cost of Merchandise Sold Sales Salaries Expense Advertising Expense Depreciation Expense- 100,000 11,343,000 7,850,000 916,000 550,000 Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Depreciation Expense- 140,000 38,000 650,000 94,000 550,000 3,600,000 Store Equipment Accounts Payable Salaries Payable Note Payable 1,820,000 366,000 41,500 Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 50,000 48,000 28,100 14,500 21,000 (final payment due 2022) 300,000 3,449,100 Kristina Marble, Capital Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner's equity 3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $50,000. 4.Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ