The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:

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.

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Cash $ 92,000 Retained Earnings $ 381,000 Accounts Receivable 450,000 Dividends 300,000 Inventory 370,000 Sales 8,925,000 Cost of Goods Sold Sales Salarles Expense Advertising Expense Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment 5,000 5,620,000 10,000 850,000 12,000 420,000 220,000 Depreciation Expense- Store Equipment Miscellaneous Selling Expense 33,000 58,000 18,000 Office Salaries Expense $540,000 Store Equipment Accumulated Depreciation- $650,000 Rent Expense Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense 48,000 Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Note Payable (final payment due in 20 years) 87,500 24,000 38,500 10,000 10,000 4,000 4,000 Miscellaneous Administrative 140,000 Expense Interest Expense 6,000 Common Stock 50,000 12,000