The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:

Cash $240,000

Accounts receivable 966,000

Inventory 1,690,000

Estimated returns inventory 22,500

Office supplies 13,500

Prepaid insurance 8,000

Office equipment 830,000

Accumulated depreciation-office equipment 550,000

Store equipment 3,600,000

Accumulated depreciation-store equipment 1,820,000

Accounts payable 321,000

Salaries payable 41,500

Customer refunds payable 40,000

Estimated coupons payable 5,000

Note payable (final payment due in 6 years) 300,000

Common stock 500,000

Retained earnings 2,949,100

Dividends 100,000

Sales 11,343,000

Cost of goods sold 7,850,000

Sales salaries expense 916,000

Advertising expense 550,000

Depreciation expense-store equipment 140,000

Miscellaneous selling expense 38,000

Office salaries expense 650,000

Rent expense 94,000

Depreciation expense-office equipment 50,000

Insurance expense 48,000

Office supplies expense 28,100

Miscellaneous administrative expense 14,500

Interest expense 21,000

Required:

1. Prepare a multiple-step income statement.

2. Prepare a statement of stockholders equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2.

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.