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 Accounts receivable $245,100 971,100 Inventory 1,786,300 Estimated returns inventory 22,200 Office supplies 22,100 Prepaid insurance 7,600 Office equipment 839,400 Accumulated depreciation-office equipment 548,200 Store equipment 3,607,700 Accumulated depreciation-store equipment 1,816,600 Accounts payable 365,900 Customer refunds payable 33,200 Salaries payable 42,500 Note payable (final payment due in 6 years) 299,000 Common stock 496,400 Retained earnings 3,140,600 Dividends 98,800 Sales 11,256,200 Cost of goods sold 7,856,100 Sales salaries expense 907,500 Advertising expense 547,800 Depreciation expense-store equipment 144,800 Miscellaneous selling expense 31,700 Office salaries expense 664,600 Rent expense 84,400 Depreciation expense-office equipment 53,800 Insurance expense 56,200 Office supplies expense 24,100 Miscellaneous administrative expense 14,900 Interest expense 12,400 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, 2012. 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 $58,000. 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. 4. Briefly explain how multiple-step and single-step income statements differ. 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 administrative expenses Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders' equity Total operating expenses Total property, plant, and equipment Total selling expenses Total stockholders' equity 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 (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 1 2 4 Labe Labe 7 10 11(Label) 12 13 14 15 16 13 18 19 20 21 Lab) 22 23 Clairemont Co. Income Statement (Label) 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. Statement of Stockholders' Equity 123456 Clairemont Co. Statement of Stockholders' Equity (Label) Common Stock Retained Total Earings Balance Sheet 3. Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. 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. Assets 2 Label) 5 7 9 10 Label 11 12 15 14 15 16 17 18 19 Liabilities 20Label 21 22 25 24 25 26 (Label) 27 38 29 Stockholders' Equity 30 31 32 33 Clairemont Co. Balance Sheet (Label) Final Question Briefly explain how multiple-step and single-step income statements differ. Which type of income statement shows intermediate balances? Single-step Multiple-step