1. Multiple-Step Income Statement and Report Form of Balance Sheet

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

   Cash	$114,900		Retained Earnings	506,200
   Accounts Receivable	306,200		Dividends	68,800
   Inventory	349,100		Sales	$4,206,700
   Estimated Returns Inventory	22,500		Cost of Goods Sold	2,433,200
   Office Supplies	10,800		Sales Salaries Expense	684,200
   Prepaid Insurance	8,400		Advertising Expense	188,200
   Office Equipment	252,700		Depreciation Expense Store Equipment	36,700
   Accumulated Depreciation Office Equipment	171,800		Miscellaneous Selling Expense	16,100
   Store Equipment	789,000		Office Salaries Expense	373,500
   Accumulated Depreciation Store Equipment	252,700		Rent Expense	55,200
   Accounts Payable	174,900		Depreciation Expense Office Equipment	27,600
   Customer Refunds Payable	40,000		Insurance Expense	17,100
   Salaries Payable	11,200		Office Supplies Expense	10,100
   Note Payable (final payment due 2024)	367,500		Miscellaneous Administrative Exp.	7,300
   Common Stock	51,800		Interest Expense	11,200

   Required:

   1. Prepare a multiple-step income statement.

   Clairemont Co. Income Statement For the Year Ended May 31, 2018

   2. Prepare a retained earnings statement.

   Clairemont Co. Retained Earnings Statement For the Year Ended May 31, 2018

   3. Prepare a balance sheet, assuming that the current portion of the note payable is $18,375.

   Clairemont Co. Balance Sheet May 31, 2018

   4. a. Which type of income statement shows intermediate balances?