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

Cash	$ 238,400
Accounts Receivable	960,300
Merchandise Inventory	1,644,400
Office Supplies	14,100
Prepaid Insurance	3,900
Office Equipment	830,000
Accumulated Depreciation-Office Equipment	545,800
Store Equipment	3,601,100
Accumulated Depreciation-Store Equipment	1,823,000
Accounts Payable	365,400
Salaries Payable	39,900
Note Payable (current portion)	60,000
Note Payable (final payment due 2022)	308,000
Common Stock	490,600
Retained Earnings	2,899,700
Dividends	95,900
Sales	11,324,800
Cost of Merchandise Sold	7,858,200
Sales Salaries Expense	906,500
Advertising Expense	556,600
Depreciation Expense-Store Equipment	137,800
Miscellaneous Selling Expense	33,800
Office Salaries Expense	664,800
Rent Expense	97,000
Depreciation Expense-Office Equipment	48,800
Insurance Expense	44,800
Office Supplies Expense	18,800
Miscellaneous Administrative Expense	14,100
Interest Expense	27,900

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.*

Clairemont Company

Income Statement

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2.

Prepare a retained earnings statement.*

Clairemont Company

Retained Earnings Statement

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3.

Prepare a report form of balance sheet. Less or Plus will automatically appear if it is required.*

Clairemont Company

Balance Sheet

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16	Liabilities
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25	Stockholders Equity
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4.

Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

Which type of income statement shows intermediate balances?

Multiple-step

Single-step

(b) Which type of balance sheet presents assets, liabilities, and stockholders equity in a downward sequence?

Account form

Report form