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, 20Y7:

Cash	$125,300		Retained Earnings	$552,500
Accounts Receivable	334,200		Dividends	75,100
Inventory	381,000		Sales	4,591,100
Estimated Returns Inventory	5,000		Cost of Goods Sold	2,655,600
Office Supplies	11,800		Sales Salaries Expense	746,800
Prepaid Insurance	9,100		Advertising Expense	205,400
Office Equipment	275,800		Depreciation Expense Store Equipment	40,000
Accumulated Depreciation Office Equipment	187,500		Miscellaneous Selling Expense	17,500
Store Equipment	861,100		Office Salaries Expense	407,700
Accumulated Depreciation Store Equipment	275,800		Rent Expense	60,200
Accounts Payable	190,900		Depreciation Expense Office Equipment	30,100
Customer Refunds Payable	10,000		Insurance Expense	18,700
Salaries Payable	12,200		Office Supplies Expense	11,000
Note Payable (final payment due 2024)	400,000		Miscellaneous Administrative Exp.	8,000
Common Stock	71,600		Interest Expense	12,200

Required:

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 $125,300 Retained Earnings Accounts Receivable 334,200 Dividends Inventory 381,000 Sales $552,500 75,100 4,591,100 2,655,600 746,800 205,400 Estimated Returns Inventory 5,000 Cost of Goods Sold Office Supplies 11,800 Sales Salaries Expense Prepaid Insurance 9,100 Advertising Expense Office Equipment 275,800 Depreciation Expense- Store Equipment 40,000 Accumulated Depreciation- Office Equipment Miscellaneous Selling Expense 17,500 187,500 Store Equipment 861,100 Office Salaries Expense 407,700 Accumulated Depreciation- Store Equipment Rent Expense 60,200 275,800 Accounts Payable 190,900 Depreciation Expense- Office Equipment 30,100 Customer Refunds Payable 10,000 12,200 Insurance Expense Office Supplies Expense 18,700 11,000 Salaries Payable Note Payable (final payment due 2024) Miscellaneous Administrative Exp. 8,000 400,000 Common Stock 71,600 Interest Expense 12,200 1. Prepare a multiple-step income statement. Kanpur Co. Income Statement For the Year Ended June 30, 2047 Sales 4,591,100 Cost of goods sold 2,655,600 Gross profit 1,935,500 Expenses: Selling expenses: Sales salaries expense 746,800 Advertising expense 205,400 Depreciation expense-store equipment 40,000 Miscellaneous selling expense 17,500 Total selling expenses 1,009,700 Administrative expenses: Office salaries expense 407,700 Rent expense 60,200 Insurance expense 18,700 Depreciation expense-office equipment 30,100 Office supplies expense 11,000 Miscellaneous administrative expense 8,000 Total administrative expenses 535,700 Total operating expenses 1,545,400 Operating income 390,100 Other revenue and expense: Interest expense 12,200 Net income 377,900 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, 2047 Common Stock Retained Earnings Total $ Balances, July 1, 2016 552,500 Issued common stock 7,500 7,500 Net income 377,900 377,900 Dividends 75,100 75,100 Balances, June 30, 20Y7 $ 201,700 KANPUR CO. Balance Sheet June 30, 20Y7 Assets Current assets: Cash 125,300 Accounts receivable 334,200 381,000 Inventory Estimated returns inventory Office supplies Prepaid insurance 5,000 11,800 9,100 Total current assets 866,400 Property, plant, and equipment: Office equipment 275,800 187,500 ~ Accumulated depreciation-office equipment v t Book value-office equipment 88,300 > Store equipment 861,100 275,800 Accumulated depreciation-store equipment v Book value-store equipment Total property, plant, and equipment 585,300 673,600 Total assets 1,540,00 Liabilities Current liabilities: Accounts payable > Salaries payable Customer refunds payable 190,900 12,200 10,000 20,000 V Note payable (current portion) Total current liabilities 233,100 Long-term liabilities: Note payable (long-term portion) 380,000 $ Total liabilities 613,100 Stockholders' equity Common stock > 71,600 552,500 x Retained earnings Total stockholders' equity Total liabilities and stockholders' equity