Multiple-step income statement and report form of balance sheet OBJ. 3 The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016: Cash $ 240,000 Dividends $ 100,000 Accounts Receivable 966,000 Sales 11,343,000 Merchandise Inventory 1,712,500 Cost of Merchandise Sold 7,850,000 Office Supplies 13,500 Sales Salaries Expense 916,000 Prepaid Insurance 8,000 Advertising Expense 550,000 Office Equipment 830,000 Depreciation Expense Accumulated Depreciation Store Equipment 140,000 Office Equipment 550,000 Miscellaneous Selling Expense 38,000 Store Equipment 3,600,000 Office Salaries Expense 650,000 Accumulated Depreciation Rent Expense 94,000 Store Equipment 1,820,000 Depreciation Expense Accounts Payable 366,000 Office Equipment 50,000 Salaries Payable 41,500 Insurance Expense 48,000 Note Payable Office Supplies Expense 28,100 (final payment due 2022) 300,000 Miscellaneous Administrative Exp. 14,500 Common Stock 500,000 Interest Expense 21,000 Retained Earnings 2,949,100 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 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 differMultiple-step income statement and report form of balance sheet OBJ. 3 The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016: Cash $ 240,000 Dividends $ 100,000 Accounts Receivable 966,000 Sales 11,343,000 Merchandise Inventory 1,712,500 Cost of Merchandise Sold 7,850,000 Office Supplies 13,500 Sales Salaries Expense 916,000 Prepaid Insurance 8,000 Advertising Expense 550,000 Office Equipment 830,000 Depreciation Expense Accumulated Depreciation Store Equipment 140,000 Office Equipment 550,000 Miscellaneous Selling Expense 38,000 Store Equipment 3,600,000 Office Salaries Expense 650,000 Accumulated Depreciation Rent Expense 94,000 Store Equipment 1,820,000 Depreciation Expense Accounts Payable 366,000 Office Equipment 50,000 Salaries Payable 41,500 Insurance Expense 48,000 Note Payable Office Supplies Expense 28,100 (final payment due 2022) 300,000 Miscellaneous Administrative Exp. 14,500 Common Stock 500,000 Interest Expense 21,000 Retained Earnings 2,949,100 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 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