The following selected accounts and their current balancesappear in the ledger of Clairemont Co. for the fiscal year endedMay 31, 2018:

Cash	$ 240,000
Accounts receivable	966,000
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 2024)	300,000
Common stock	500,000
Retained earnings	2,949,100
Dividends	100,000
Sales	11,343,000
Cost of goods 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 sellingexpenses together in a single entry and combine administrativeexpenses together in a single entry. If there is a net loss, enterthat amount as a negative number using a minus sign.*
2.	Prepare a retained earnings statement. Negative amount shouldbe indicated by the minus sign.*
3.	Prepare balance sheet, assuming that the current portion of thenote payable is $50,000. Negative amount should be indicated by theminus sign.*
4.	Prepare closing entries as of May 31, 2018. Refer to the Chartof Accounts for exact wording of account titles.

* Be sure to complete the statement headings. Refer to theproblem data and the list of Labels and Amount Descriptionsprovided for the exact wording of the answer choices for textentries. A colon (:) will automatically appear if it isrequired. CHART OF ACCOUNTS Clairemont Co. General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 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 217 Note Payable (current portion) 218 Note Payable (final payment due 2024) 219 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales EXPENSES 510 Cost of Goods 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 and Amount Descriptions Labels Current assets Current liabilities Expenses For the Year Ended May 31, 2018 Long-term liabilities May 31, 2018 Property, plant, and equipment Amount Descriptions Administrative expenses Change in retained earnings Dividends Net income Net income for the year Net loss Net loss for the year Plus dividends Retained earnings, June 1, 2017 Retained earnings, May 31, 2018 Selling expenses Total assets Total expenses Total current assets Total current liabilities Total liabilities Total liabilities and stockholders’ equity Total property, plant, and equipment Total stockholders’ equity Income Statement 1. Prepare a single-step income statement. Combine sellingexpenses together in a single entry and combine administrativeexpenses together in a single entry. Be sure to complete thestatement headings. Refer to the Chart of Accounts and the list ofLabels and Amount Descriptions provided for the exact wording ofthe answer choices for text entries. If there is a net loss, enterthat amount as a negative number using a minus sign. A colon (:)will automatically appear if it is required. Clairemont Co. Income Statement 1 2 3 4 5 6 7 8 Retained Earnings Statement 2. Prepare a retained earnings statement. Be sure to completethe statement heading. Refer to the Amount Descriptions listprovided for the exact wording of the answer choices for textentries. Negative amount should be indicated by the minus sign. Clairemont Co. Retained Earnings Statement 1 2 3 4 5 Balance Sheet Prepare balance sheet, assuming that the current portion of thenote payable is $50,000. Be sure to complete the statement heading.Refer to the problem data and the list of Labels and AmountDescriptions provided for the exact wording of the answer choicesfor text entries. Negative amount should be indicated by the minussign. A colon (:) will automatically appear if it is required. Clairemont Co. Balance Sheet 1 Assets 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Liabilities 18 19 20 21 22 23 24 25 26 27 Stockholders’ Equity 28 29 30 31