Multiple-step income statement and balance sheet Obj. 4 The following selected accounts and their current balances appear in the ledger of Kanpur Co.

for the fiscal year ended June 30, 20Y7:

Cash $ 92,000 Retained Earnings $ 381,000 Accounts Receivable 450,000 Dividends 300,000 Inventory 370,000 Sales 8,925,000 Estimated Returns Inventory 5,000 Cost of Goods Sold 5,620,000 Office Supplies 10,000 Sales Salaries Expense 850,000 Prepaid Insurance 12,000 Advertising Expense 420,000 Office Equipment 220,000 Depreciation Expense—

Accumulated Depreciation— Store Equipment 33,000 Office Equipment 58,000 Miscellaneous Selling Expense 18,000.

Store Equipment $650,000 Office Salaries Expense $540,000 Accumulated Depreciation— Rent Expense 48,000 Store Equipment 87,500 Insurance Expense 24,000 Accounts Payable 38,500 Depreciation Expense—
Customers Refunds Payable 10,000 Office Equipment 10,000 Salaries Payable 4,000 Office Supplies Expense 4,000 Note Payable Miscellaneous Administrative (final payment due in 20 years) 140,000 Expense 6,000 Common Stock 50,000 Interest Expense 12,000 Instructions 1. Prepare a multiple-step income statement.
2. Prepare a statement of stockholders’ equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.
4. Briefly explain how multiple and single-step income statements differ.AppendixLO1