The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:




Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner’s equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $7,000.
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.
 

Cash $ 92,000 Sales $9,175,000 Accounts Receivable 450,000 Sales Returns and Allowances 160,000 Merchandise Inventory Office Supplies 375,000 Sales Discounts 90,000 10,000 Cost of Merchandise Sold 5,620,000 Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Prepaid Insurance 850,000 12,000 220,000 Office Equipment 420,000 Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- S8,000 33,000 650,000 18,000 540,000 Store Equipment Accounts Payable Salaries Payable Note Payable (final payment due 2032) Gerri Faber, Capital Gerri Faber, Drawing 87,500 Rent Expense Insurance Expense 48,000 48,500 24,000 4,000 Depreciation Expense- Office Equipment Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 10,000 140,000 4,000 431,000 6,000 300,000 12,000