Question

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

Cash	$111,200		Retained Earnings	490,200
Accounts Receivable	301,900		Dividends	66,600
Inventory	338,100		Sales	$4,074,100
Estimated Returns Inventory	22,500		Cost of Goods Sold	2,356,600
Office Supplies	10,500		Sales Salaries Expense	662,700
Prepaid Insurance	8,100		Advertising Expense	182,200
Office Equipment	244,800		Depreciation Expense—    Store Equipment	35,500
Accumulated Depreciation—    Office Equipment	166,300		Miscellaneous Selling Expense	15,600
Store Equipment	764,100		Office Salaries Expense	361,800
Accumulated Depreciation—    Store Equipment	244,800		Rent Expense	53,400
Accounts Payable	169,400		Depreciation Expense—    Office Equipment	26,700
Customer Refunds Payable	40,000		Insurance Expense	16,600
Salaries Payable	10,800		Office Supplies Expense	9,800
Note Payable    (final payment due 2024)	355,000		Miscellaneous Administrative Exp.	7,100
Common Stock	56,000		Interest Expense	10,800

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 $17,750.

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?

Answer 1