The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019:

Cash	$ 240,000
Accounts Receivable	966,000
Merchandise 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 2022)	300,000
Kristina Marble, Capital	3,449,100
Kristina Marble, Drawing	100,000
Sales	11,343,000
Cost of Merchandise 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. *
2.	Prepare closing entries as of May 31, 2019. 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 ACCOUNTSClairemont CompanyGeneral Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise 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
218	Note Payable
219	Sales Tax Payable

	EQUITY
310	Kristina Marble, Capital
311	Kristina Marble, Drawing
312	Income Summary

	REVENUE
410	Sales

EXPENSES

510

Cost of Merchandise 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
Current assets
Current liabilities
Expenses
For the Year Ended May 31, 2019
Long-term liabilities
May 31, 2019
Property, plant, and equipment
Amount Descriptions
Administrative expenses
Increase in owners equity
Kristina Marble, capital, June 1, 2018
Kristina Marble, capital, May 31, 2019
Less withdrawals
Net income
Net income for the year
Net loss
Selling expenses
Total assets
Total expenses
Total current assets
Total current liabilities
Total liabilities
Total liabilities and owners equity
Total property, plant, and equipment