The following selected accounts and their current balances a

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018 Cash Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Office equipment Accumulated depreciation-office equipment Store equipment Accumulated depreciation-store equipment Accounts payable Customer refunds payable Salaries payable Note payable (final payment due 2024) Common stock Retained earnings Dividends Sales Cost of goods sold S 238,400 960,300 1,644,400 20,900 22,200 15,100 825,800 551,100 3,603,000 1,819,400 356,700 48,800 44,900 285,000 507,300 2,822,800 108,200 11,405,100 7,856,600

Solution

Note : As there is requirement of Multi Step Income Statement only. I had prepared Multi step Income statement for the co. However I didn\'t understand why the labels are given. If there is another requirement also please let me know in comment box.

Multi-step income statement
Clairemont Co.
Income Statement
for the year ended May 31, 2018
	Particulars		Amount in $
	Sales		11,405,100
Less:	Sales discounts		0
	Net sales		11,405,100
Less:	Cost of goods sold		7,856,600
	Gross profit		3,548,500
Less:	Operating expenses
	Selling expenses :
	Sales Salaries Expense	908,400
	Advertising Expense	545,800
	Depreciation Expense- Store Equipment	142,200
	Miscellanous Selling Expense	41,000
	Total Selling expenses   (A)	1,637,400
	General and Administrative Expenses :
	Office Salaries	651,300
	Rent Expense	90,800
	Depreciation Expense- Office Equipment	40,700
	Insurance Expense	47,600
	Office Supplies Expense	35,000
	Miscellanous Administrative Expense	15,200
	Total General and Administrative Expenses (B)	880,600
	Total Operating expenses (A+B)		2,518,000
	Income from Operations		1,030,500
	Other Income and Expenses
	Interest Expense	-21,000	-21,000
	Net Income		1,009,500