Instructions The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Cash $243,100 Accounts receivable 964,900 Inventory 1,788,600 Estimated returns inventory 21,200 Office supplies 17,800 Prepaid insurance 8,400 Office equipment 825,900 Accumulated depreciation-office equipment 543,800 Store equipment 3,609,700 Depreciation expense-office equipment 56,200 Accumulated depreciation-store equipment 1,814,900 Insurance expense 38,600 Accounts payable 356,300 Office supplies expense 32,700 Customer refunds payable 39,200 Miscellaneous administrative expense 7,900 Salaries payable 44,100 Interest expense 21,700 Note payable (final payment due in 6 years) 289,000 Common stock 500,900 Retained earnings 3,143,700 Dividends 94,200 Sales 11,281,200 Cost of goods sold 7,858,000 Required: 1. Prepare a multiple-step income statement. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon () will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $42,000. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign 4. Briefly explain how multiple-step and single-step income statements differ. Sales salaries expense 917,600 551,900 Advertising expense Depreciation expense-store equipment Miscellaneous selling expense 149,700 36,600 Office salaries expense 668,600 Rent expense 99,800 Labels and Amount Descriptions Labels Administrative expenses Current assets Current liabilities For the Year Ended May 31, 20Y2 Long-term liabilities May 31, 20Y2 Operating expenses Other revenue and expense Property, plant, and equipment Selling expenses Amount Descriptions Balances, June 1, 20Y1 Balances, May 31, 20Y2 Book value-office equipment Book value-store equipment Dividends Gross profit Issued common stock Net income Net loss Note payable (current portion) Operating income Total current liabilities Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity Total administrative expenses Total assets Total current assets Income Statement 1. Prepare a multiple-step income statement. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Clairemont Co. Income Statement (Label) 1 2 3 4 (Label) 5 (Label) 6 7 9 10 11 (Label) 12 19 13 20 14 21 (Label) 15 22 16 23 17 18 Statement of Stockholders' Equity 2. Prepare a statement of stockholders' equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Clairemont Co. Statement of Stockholders' Equity (Label) Retained 1 Common Stock Total Earnings 2 3 4 5 6 Final Question Briefly explain how multiple-step and single-step income statements differ. Which type of income statement shows intermediate balances? O Single-step O Multiple-step Balance Sheet 3. Prepare a balance sheet, assuming that the current portion of the note payable is $42,000. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Clairemont Co Balance Sheet (Label) 17 1 Assets 18 2 (Label) 19 Liabilities 3 20 (Label) 4 21 5 22 6 23 24 8 25 9 26 (Label) 10 (Label) 27 28 11 29 Stockholders' Equity 12 30 13 31 14 32 15 33 16