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

   Cash	$123,500		Retained Earnings	544,200
   Accounts Receivable	335,100		Dividends	73,900
   Inventory	375,300		Sales	$4,522,400
   Estimated Returns Inventory	22,500		Cost of Goods Sold	2,615,800
   Office Supplies	11,600		Sales Salaries Expense	735,600
   Prepaid Insurance	9,000		Advertising Expense	202,300
   Office Equipment	271,700		Depreciation Expense Store Equipment	39,400
   Accumulated Depreciation Office Equipment	184,600		Miscellaneous Selling Expense	17,300
   Store Equipment	848,200		Office Salaries Expense	401,600
   Accumulated Depreciation Store Equipment	271,700		Rent Expense	59,300
   Accounts Payable	188,000		Depreciation Expense Office Equipment	29,600
   Customer Refunds Payable	40,000		Insurance Expense	18,400
   Salaries Payable	12,000		Office Supplies Expense	10,900
   Note Payable (final payment due 2024)	395,000		Miscellaneous Administrative Exp.	7,900
   Common Stock	63,000		Interest Expense	12,000

   Required:

   1. Prepare a multiple-step income statement.

   Clairemont Co. Income Statement For the Year Ended May 31, 2018
   Expenses:
   Selling expenses:
   Total selling expenses
   Administrative expenses:
   Total administrative expenses
   Total operating expenses

   2. Prepare a retained earnings statement.

   Clairemont Co. Retained Earnings Statement For the Year Ended May 31, 2018

   3. Prepare a balance sheet, assuming that the current portion of the note payable is $19,750.

   Clairemont Co. Balance Sheet May 31, 2018
   Assets
   Current assets:
   Total current assets
   Property, plant and equipment:
   Total property, plant and equipment
   Total assets
   Liabilities
   Current liabilities:
   Total current liabilities
   Long-term liabilities:
   Total liabilities
   Stockholders' equity
   Total stockholders' equity
   Total liabilities and stockholders' equity

   4. a. Which type of income statement shows intermediate balances?