The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:

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: 321,000

Salaries payable 41,500

Customer refunds payable: 40,000

Estimated coupons payable: 5,000

Note payable (final payment due in 6 years): 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 multiple-step income statement.