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

Cash	$ 232,700
Accounts receivable	957,000
Inventory	1,668,600
Estimated returns inventory	21,300
Office supplies	15,600
Prepaid insurance	18,000
Office equipment	827,000
Accumulated depreciation-office equipment	556,000
Store equipment	3,594,800
Accumulated depreciation-store equipment	1,827,100
Accounts payable	361,900
Customer refunds payable	43,400
Salaries payable	41,900
Note payable (final payment due 2024)	296,000
Common stock	501,600
Retained earnings	2,786,300
Dividends	99,900
Sales	11,403,800
Cost of goods sold	7,842,100
Sales salaries expense	923,100
Advertising expense	540,500
Depreciation expense-store equipment	134,900
Miscellaneous selling expense	37,800
Office salaries expense	664,400
Rent expense	101,000
Depreciation expense-office equipment	45,900
Insurance expense	42,700
Office supplies expense	31,800
Miscellaneous administrative expense	7,100
Interest expense	11,800

	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 $58,000.*
4.	Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

* 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.