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

Cash	$ 241,300
Accounts Receivable	975,200
Merchandise Inventory	1,810,700
Office Supplies	22,600
Prepaid Insurance	15,500
Office Equipment	835,700
Accumulated Depreciation-Office Equipment	553,700
Store Equipment	3,590,000
Accumulated Depreciation-Store Equipment	1,826,400
Accounts Payable	368,200
Salaries Payable	44,300
Note Payable (current portion)	44,700
Note Payable (final payment due 2022)	246,300
Kristina Marble, Capital	3,521,100
Kristina Marble, Drawing	96,900
Sales	11,382,800
Cost of Merchandise Sold	7,845,100
Sales Salaries Expense	921,100
Advertising Expense	543,500
Depreciation Expense-Store Equipment	144,900
Miscellaneous Selling Expense	43,700
Office Salaries Expense	647,800
Rent Expense	102,000
Depreciation Expense-Office Equipment	54,000
Insurance Expense	48,200
Office Supplies Expense	25,800
Miscellaneous Administrative Expense	8,100
Interest Expense	15,400
	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 statement of owners equity.*
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.

Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended May 31, 2016
Long-term liabilities
May 31, 2016
Operating expenses
Other income and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Gross profit
Income from operations
Increase in owners equity
Kristina Marble, capital, June 1, 2015
Kristina Marble, capital, May 31, 2016
Less withdrawals
Net income
Net income for the year
Net loss
Total administrative expenses
Total assets
Total current assets
Total current liabilities
Total liabilities
Total liabilities and owners equity
Total operating expenses
Total property, plant, and equipment
Total selling expenses

Prepare a multiple-step income statement. Be sure to complete the statement heading. 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. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

Clairemont Company

Income Statement

1
2
3
4
5	Selling expenses:
6
7
8
9
10
11	Administrative expenses:
12
13
14
15
16
17
18
19
20
21
22
23

Prepare a statement of owners equity. Be sure to complete the statement heading. Refer to 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.

Clairemont Company

Statement of Owners Equity

1
2
3
4
5