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

Cash	$ 238,400
Accounts receivable	965,200
Inventory	1,771,300
Estimated returns inventory	21,900
Office supplies	17,900
Prepaid insurance	3,300
Office equipment	821,200
Accumulated depreciation-office equipment	544,100
Store equipment	3,601,000
Accumulated depreciation-store equipment	1,816,900
Accounts payable	364,800
Customer refunds payable	44,100
Salaries payable	37,400
Note payable (final payment due 2024)	300,000
Common stock	493,800
Retained earnings	2,999,000
Dividends	91,700
Sales	11,320,600
Cost of goods sold	7,851,900
Sales salaries expense	898,300
Advertising expense	559,200
Depreciation expense-store equipment	145,000
Miscellaneous selling expense	39,400
Office salaries expense	648,200
Rent expense	90,800
Depreciation expense-office equipment	47,100
Insurance expense	45,900
Office supplies expense	28,000
Miscellaneous administrative expense	6,300
Interest expense	28,700

	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 retained earnings statement. Negative amount should be indicated by the minus sign.*
3.	Prepare a balance sheet, assuming that the current portion of the note payable is $58,000.*
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, 2018

Long-term liabilities

May 31, 2018

Operating expenses

Other revenue and expense

Property, plant, and equipment

Selling expenses

Amount Descriptions

Change in retained earnings

Gross profit

Income from operations

Dividends

Net income

Net income for the year

Net loss

Net loss for the year

Note payable (current portion)

Retained earnings, June 1, 2017

Retained earnings, May 31, 2018

Total administrative expenses

Total assets

Total current assets

Total current liabilities

Total liabilities

Total liabilities and stockholders equity

Total operating expenses

Total property, plant, and equipment

Total selling expenses

Total stockholders equity

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

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Prepare a retained earnings statement. 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. Negative amount should be indicated by the minus sign. A colon (:) will automatically appear if it is required.

Clairemont Company

Retained Earnings Statement

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Prepare a report form of balance sheet. 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. Negative amount should be indicated by the minus sign.

Clairemont Company

Balance Sheet

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17	Liabilities
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27	Stockholders Equity
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