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	$133,700		Gerri Faber, Drawing	$80,100
Accounts Receivable	342,900		Sales	4,833,100
Merchandise Inventory	406,350		Cost of Merchandise Sold	2,832,300
Office Supplies	12,600		Sales Salaries Expense	796,400
Prepaid Insurance	9,800		Advertising Expense	219,000
Office Equipment	294,200		Depreciation ExpenseStore Equipment	42,700
Accumulated DepreciationOffice Equipment	199,900		Miscellaneous Selling Expense	18,700
Store Equipment	918,400		Office Salaries Expense	434,800
Accumulated DepreciationStore Equipment	294,200		Rent Expense	64,200
Accounts Payable	203,600		Insurance Expense	19,900
Customer Refunds Payable	32,100		Depreciation ExpenseOffice Equipment	32,100
Salaries Payable	13,000		Office Supplies Expense	11,800
Note Payable (final payment due in eight years)	427,500		Miscellaneous Administrative Exp.	8,500
Gerri Faber, Capital	688,050		Interest Expense	13,000

Required:

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 $17,100.

4. Which type of income statement shows intermediate balances?

a) Multiple-step

b) Single-step