Multiple$-$step income statement and balance sheet

The following selected accounts and their current balances appear in the ledger of Kanpur Co$,$ for the fiscal year ended June $30,20$Y$7$:

Cash

Accounts Receivable

Inventory

$$115,300310,200350,5005,00010,9008,400253,800$

Estimated Returns Inventory

Office Supplies

Prepaid Insurance

Office Equipment

Accumulated Depreciation$-$Office Equipment

$172,400$

Store Equipment

$792,100$

Accumulated Depreciation$-$Store Equipment

Accounts Payable

$253,800$

$172,600$

Salaries Payable

$11,200$

Customer Refunds Payable

$10,000$

Estimated Coupons Payable

$3,000$

Note Payable $($final payment due in $20$ years$)$

$367,500$

Common Stock

$68,900$

Retained Earnings

$508,200$

Dividends

$69,000$

Sales

$4,223,500$

Cost of Goods Sold

Sales Salaries Expense

Advertising Expense

Depreciation Expense$-$Store Equipment

Miscellaneous Selling Expense

Office Salaries Expense

Rent Expense

Insurance Expense

Depreciation Expense$-$Office Equipment

$2,443,000$

$687,000$

$188,900$

$36,800$

$16,100$

$375,000$

Office Supplies Expense

Miscellaneous Administrative Expense

$55,400$

$17,200$

$27,700$

$10,200$

Interest Expense

$7,400$

$11,200$

Required:

Prepare a multiple$-$step income statement.

Kanpur Co$.$

Prepare a multiple$-$step income statement.

Kanpur Co$.$

Income Statement

For the Year Ended June $30,20Y7$

Net income $$

$2.$ Prepare a statement of stockholders' equity. Additional common stock of $$7,500$ was issued during the year ended June $30,20Y7.$

Kanpur Co$.$

Statement of Stockholders' Equity

For the Year Ended June $30,20Y7$Prepare a statement of stockholders' equity. Additional common stock of $$7,500$ was issued during the year ended June $30,20y7.$

Kanpur Co$.$

Statement of Stockholders' Equity

For the Year Ended June $30,20Y7$

Prepare a balance sheet, assuming that the current portion of the note payable is $$18,375.$

KANPUR CO$.$

Balance Sheet

June $30,20Y7$

Assets

Current assets:

Estimated returns inventory

Office supplies $$

Prepaid insurance

Total current assets

Property, plant, and equipment:

office equipment $$

Accumulated depreciation$-$office equipment $$

Book value$-$office equipment

Store equipment

Accumulated depreciation$-$store equipment $$

Book value$-$store equipment $$

$[],[10,900]$

$q,$

Total property, plant, and equipment

Total assetsAccumulated depreciation$-$store equipment

$-253,800$

Book value$-$store equipment

Total property, plant, and equipment

Total assets

Liabilities

Current liabilities:

Accounts payable $$

Salaries payable $$

Customer refunds payable

Estimated coupons payable $$

Note payable $($current portion$)$

Total current liabilities

Long$-$term liabilities:

Note payable $($long$-$term portion$)$

Total liabilities

Stockholders' equity

$q,$

Retained earnings

Total stockholders' equity

Total liabilities and stockholders' equity

$4.$ Which type of income statement shows intermediate balances?

Multiple$-$step $$

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Check My Work

Use the multiple$-$step income statement format, with its separation of revenues, cost of merchandise sold, selling expenses, administrative expens

Use the format for the statement of stockholders' equity, showing the net income $($or loss$)$ taken from the income statement.

Use the format for the report form of balance sheet, with details on the current assets, property, plant, and equipment, current liabilities, and long

$$ Consider the difference in the focus between the single$-$step income statement and the multiple$-$step income statement. Which one uses intermedi