The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y5:

Instructions

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner’s equity.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.

4. Briefly explain how multiple-step and single-step income statements differ.

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Cash $ 92,000 Gerri Faber, Drawing $ 300,000 Accounts Receivable 450,000 Sales 8,925,000 Merchandise Inventory 375,000 Cost of Merchandise Sold 5.620,000 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 in eight years) 140,000 Gerri Faber, Capital 10,000 Sales Salaries Expense 850,000 Advertising Expense Depreciation Expense- Store Equipment 12,000 420,000 220,000 33,000 58,000 Miscellaneous Selling Expense 18,000 650,000 Office Salaries Expense 540,000 Rent Expense 48,000 Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense 87,500 24,000 38,500 10,000 10,000 4,000 4,000 Miscellaneous Administrative Exp. 6,000 Interest Expense 12,000 431,000