The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018:Cash $ 240,000Accounts receivable 966,000Inventory 1,690,000Estimated returns inventory 22,500Office supplies 13,500Prepaid insurance 8,000Office equipment 830,000Accumulated depreciation-office equipment 550,000Store equipment 3,600,000Accumulated depreciation-store equipment 1,820,000Accounts payable 326,000Customer refunds payable 40,000Salaries payable 41,500Note payable (final payment due 2024) 300,000Common stock 500,000Retained earnings 2,949,100Dividends 100,000Sales 11,343,000Cost of goods sold 7,850,000Sales salaries expense 916,000Advertising expense 550,000Depreciation expense-store equipment 140,000Miscellaneous selling expense 38,000Office salaries expense 650,000Rent expense 94,000Depreciation expense-office equipment 50,000Insurance expense 48,000Office supplies expense 28,100Miscellaneous administrative expense 14,500Interest expense 21,0001. 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.2. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.