The following selected accounts and their current balances appear in the ledger of Clairemont Co for the fiscal year ended May 31, 2016 Cash $ 243,100 Accounts Receivable 964,900 Merchandise Inventory 1,788,600 Office Supplies 14,200 Prepaid Insurance 6,400 Office Equipment 828,400 Accumulated Depreciation Office Equipment 545,900 Store Equipment 3,593,800 Accumulated Depreciation Store Equipment 1,829,700 Accounts Payable 360,900 Salaries Payable 41,000 Note Payable (current portion) 53,000 Note Payable (final payment due 2022) 298,000 Common Stock 502,600 Retained Earnings 3,043,000 Dividends 91,500 Sales 11,299,800 Cost of Merchandise Sold 7,844,200 Sales Salaries Expense 903,600 Advertising Expense 558,000 Depreciation Expense Store Equipment 137,500 Miscellaneous Selling Expense 39,900 Office Salaries Expense 653,500 Rent Expense 92,600 Depreciation Expense Office Equipment 41,900 Insurance Expense 53,800 Office Supplies Expense 34,300 Miscellaneous Administrative Expense 5,100 Interest Expense 25,600 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 3 Prepare a report form of balance sheet Less or Plus will automatically appear if it is required 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 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 Report form Account form

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The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016: Cash $

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016:

Cash	$ 243,100
Accounts Receivable	964,900
Merchandise Inventory	1,788,600
Office Supplies	14,200
Prepaid Insurance	6,400
Office Equipment	828,400
Accumulated Depreciation-Office Equipment	545,900
Store Equipment	3,593,800
Accumulated Depreciation-Store Equipment	1,829,700
Accounts Payable	360,900
Salaries Payable	41,000
Note Payable (current portion)	53,000
Note Payable (final payment due 2022)	298,000
Common Stock	502,600
Retained Earnings	3,043,000
Dividends	91,500
Sales	11,299,800
Cost of Merchandise Sold	7,844,200
Sales Salaries Expense	903,600
Advertising Expense	558,000
Depreciation Expense-Store Equipment	137,500
Miscellaneous Selling Expense	39,900
Office Salaries Expense	653,500
Rent Expense	92,600
Depreciation Expense-Office Equipment	41,900
Insurance Expense	53,800
Office Supplies Expense	34,300
Miscellaneous Administrative Expense	5,100
Interest Expense	25,600

	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.*
3.	Prepare a report form of balance sheet. Less or Plus will automatically appear if it is required.*
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.

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?

Report form

Account form