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, 20Y5: Cash $128,700 Gerri Faber, Drawing $77,000 Accounts Receivable 330,000 Sales 4,651,200 Merchandise Inventory 391,050 Cost of Merchandise Sold 2,725,600 Office Supplies 12,100 Sales Salaries Expense 766,500 Prepaid Insurance 9,400 Advertising Expense 210,800 Office Equipment 283,100 Depreciation ExpenseStore Equipment 41,100 Accumulated DepreciationOffice Equipment 192,400 Miscellaneous Selling Expense 18,000 Store Equipment 883,800 Office Salaries Expense 418,400 Accumulated DepreciationStore Equipment 283,100 Rent Expense 61,800 Accounts Payable 195,900 Insurance Expense 19,200 Customer Refunds Payable 30,900 Depreciation ExpenseOffice Equipment 30,900 Salaries Payable 12,500 Office Supplies Expense 11,300 Note Payable (final payment due in eight years) 412,500 Miscellaneous Administrative Exp. 8,200 Gerri Faber, Capital 660,950 Interest Expense 12,500 Required: 1. Prepare a multiple-step income statement. Kanpur Co. Income Statement For the Year Ended June 30, 20Y5 Sales $ Cost of merchandise sold Gross profit $ Expenses: Selling expenses: Sales salaries expense $ Advertising expense Depreciation expense-store equipment Miscellaneous selling expense Total selling expenses $ Administrative expenses: Office salaries expense $ Rent expense Insurance expense Depreciation expense-office equipment Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses Income from operations $ Other expense: Interest expense Net income $ 2. Prepare a statement of owner's equity. Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 20Y5 Gerri Faber, capital, July 1, 20Y4 $ Net income for the year $ Withdrawals Increase in owner's equity Gerri Faber, capital, June 30, 20Y5 $ 3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,500. Kanpur Co. Balance Sheet June 30, 20Y5 Assets Current assets: Cash $ Accounts receivable Merchandise inventory Office supplies Prepaid insurance Total current assets $ Property, plant, and equipment: Office equipment $ Less accumulated depreciation-Office equipment $ Store equipment $ Less accumulated depreciation-Store equipment Total property, plant, and equipment Total assets $ Liabilities Current liabilities: Accounts payable $ Customer refunds payable Salaries payable Note payable (current portion) Total current liabilities $ Long-term liabilities: Note payable (final payment due in eight years) Total liabilities $ Owner's equity Gerri Faber, capital Total liabilities and owner's equity $