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

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	326,000
Customer refunds payable	40,000
Salaries payable	41,500
Note payable (final payment due 2024)	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 single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. If there is a net loss, enter that amount as a negative number using a minus sign.*
2.	Prepare a retained earnings statement. Negative amount should be indicated by the minus sign.*
3.	Prepare balance sheet, assuming that the current portion of the note payable is $50,000. Negative amount should be indicated by the minus sign.*
4.	Prepare closing entries as of May 31, 2018. Refer to the Chart of Accounts for exact wording of account titles.

* 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.

CHART OF ACCOUNTS

Clairemont Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
217	Note Payable (current portion)
218	Note Payable (final payment due 2024)
219	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Sales Salaries Expense
527	Office Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
540	Miscellaneous Selling Expense
541	Miscellaneous Administrative Expense
710	Interest Expense

Labels and Amount Descriptions

Labels
Current assets
Current liabilities
Expenses
For the Year Ended May 31, 2018
Long-term liabilities
May 31, 2018
Property, plant, and equipment
Amount Descriptions
Administrative expenses
Change in retained earnings
Dividends
Net income
Net income for the year
Net loss
Net loss for the year
Plus dividends
Retained earnings, June 1, 2017
Retained earnings, May 31, 2018
Selling expenses
Total assets
Total expenses
Total current assets
Total current liabilities
Total liabilities
Total liabilities and stockholders equity
Total property, plant, and equipment
Total stockholders equity

Income Statement

1. Prepare a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry. Be sure to complete the statement headings. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If there is a net loss, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

Clairemont Co.

Income Statement

1
2
3
4
5
6
7
8

Retained Earnings Statement

2. Prepare a retained earnings statement. Be sure to complete the statement heading. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Negative amount should be indicated by the minus sign.

Clairemont Co.

Retained Earnings Statement

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2
3
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5

Balance Sheet

Prepare balance sheet, assuming that the current portion of the note payable is $50,000. 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. Negative amount should be indicated by the minus sign. A colon (:) will automatically appear if it is required.

Clairemont Co.

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17	Liabilities
18
19
20
21
22
23
24
25
26
27	Stockholders Equity
28
29
30
31