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, 2017: Cash Accounts Receivable $127,000 341,600 Inventory 386,000 Estimated Returns Inventory 5,000 Office Supplies 12,000 Prepaid Insurance 9,300 Office Equipment 279,500 Store Equipment Accumulated Depreciation-Office Equipment 189,900 Sales Cost of Goods Sold 4,651,300 2,690,400 Sales Salaries Expense 756,600 Advertising Expense 208,100 Depreciation Expense-Store Equipment 40,500 Miscellaneous Selling Expense 17,800 Office Salaries Expense 413,000 Rent Expense 61,000 Insurance Expense 18,900 Depreciation Expense-Office Equipment 30,500 Office Supplies Expense 11,200 Miscellaneous Administrative Expense 8,100 Interest Expense 12,400 Required: 1. Prepare a multiple-step income statement. Sales Cost of goods sold 4 Kanpur Co. Income Statement For the Year Ended June 30, 2017 4,651,300 2,690,400 Expenses: Selling expenses: Sales salaries expense. 756,600 Advertising expense 208,100 Depreciation expense-store equipment 40,500 Miscellaneous selling expense 17,800 Total selling expenses 1,023,000 Administrative expenses: Office salaries expense 413,000 Rent expense 61,000 Insurance expense 18,900 Depreciation expense-office equipment 30,500 Office supplies expense 11,200 Miscellaneous administrative expense 8,100 Total administrative expenses 542,700 Total operating expenses Operating income Total operating expenses Operating income. Other revenue and expense: Interest expense Net income 2. Prepare a statement of stockholders' equity. Additional common stock of $7,500 was issued during the year ended June 30, 2017. Kanpur Co. Statement of Stockholders' Equity For the Year Ended June 30, 2017 Balances, July 1, 2016 Issued common stock. Net income Dividends Balances, June 30, 2017 Common Stock Retained Earnings Total 3. Prepare a balance sheet, assuming that the current portion of the note payable is $20,250. KANPUR CO. Balance Sheet June 30, 2017 Current assets: Cash Assets Accounts receivable Inventory Estimated returns inventory Office supplies Prepaid insurance Total current assets Property, plant, and equipment: Office equipment 279,500 Accumulated depreciation-office equipment 189,900 Store equipment 872,400 127,000 341,600 386,000 5,000 12,000 9,300 Store equipment Accumulated depreciation-store equipment 872,400 18990d Total property, plant, and equipment Total assets Current liabilities: Accounts payable Total current liabilities Long-term liabilities: Total liabilities Liabilities Stockholders' equity