Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended May 31, 2018
Long-term liabilities
May 31, 2018
Operating expenses
Other revenue and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Change in retained earnings
Gross profit
Income from operations
Dividends
Net income
Net income for the year
Net loss
Net loss for the year
Note payable (current portion)
Retained earnings, June 1, 2017
Retained earnings, May 31, 2018
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

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:

Cash	$ 241,300
Accounts receivable	975,200
Inventory	1,810,700
Estimated returns inventory	21,000
Office supplies	22,300
Prepaid insurance	11,400
Office equipment	833,700
Accumulated depreciation-office equipment	540,000
Store equipment	3,606,400
Accumulated depreciation-store equipment	1,822,200
Accounts payable	364,600
Customer refunds payable	40,600
Salaries payable	42,700
Note payable (final payment due 2024)	317,000
Common stock	495,100
Retained earnings	3,010,700
Dividends	97,100
Sales	11,371,300
Cost of goods sold	7,854,900
Sales salaries expense	917,700
Advertising expense	542,000
Depreciation expense-store equipment	148,000
Miscellaneous selling expense	46,800
Office salaries expense	654,600
Rent expense	91,700
Depreciation expense-office equipment	43,600
Insurance expense	42,400
Office supplies expense	22,800
Miscellaneous administrative expense	6,600
Interest expense	14,000

	Required:
1.	Prepare a multiple-step income statement. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.*
2.	Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.*
3.	Prepare a balance sheet, assuming that the current portion of the note payable is $55,000.*
4.	Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

* Be sure to complete the statement headings. 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. 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. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ. (a) Which type of income statement shows intermediate balances? Multiple-step Single-step (b) Which type of balance sheet presents assets, liabilities, and stockholders equity in a downward sequence? Account form Report form