Multiple-step income statement and balance sheet Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet Final Question Instructions Cash Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Store equipment Accumulated depreciation-store equipment Accounts payable Customer refunds payable Salaries payable Note payable (final payment due 2024) Common stock Retained earnings Dividends Sales Cost of goods sold Sales salaries expense Advertising expense Depreciation expense-store equipment Miscellaneous selling expense Office salaries expense Rent expense Depreciation expense-office equipment Insurance expense Office supplies expense Miscellaneous administrative expense Interest expense $ 240,000 966,000 1,690,000 22,500 13,500 8,000 830,000 550,000 3,600,000 1,820,000 326,000 40,000 41,500 300,000 500,000 2,949,100 100,000 11,343,000 7,850,000 916,000 550,000 140,000 38,000 650,000 94,000 50,000 48,000 28,100 14,500 21,000 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 $50,000.* 4. Briefly explain how multiple-step and single-step income statements 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 Labels and Amount Descriptions 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 Income Statement 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 Desc orovided for the exact wording of the answer choices for text entries. A colon (1) will automatically appear if it is required. In the Other income and expen only, enter amounts that represent other expenses as negative numbers using a minus sign. Clairemont Company Income Statement (Label) 4 5 Label) Label) 11 Label) 21 Label) Culle Slaleren Retained Earnings Statement pl Prepare a retained earnings statement Be sure to complete the statement heading. Refer to the list of Labels and Amount ol exact wording of the answer choices for text entries. Negative amount should be indicated by the minus sign. A colon () wil required. Clairemont Company Retained Earnings Statement (Label) Balance Sheet Assets 2 Label) 10 (Label) Liabilities 18 Label) 24 Label) Stockholders' Equity Final Question Briefly explain how multiple-step and single-step income statements differ Which type of income statement shows intermediate balances? Multiple-step Single-step