Multiple-Step Income Statement and Report Form of Balance Sheet

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:

Cash	$127,300		Gerri Faber, Drawing	$76,200
Accounts Receivable	342,500		Sales	4,603,100
Merchandise Inventory	387,000		Cost of Merchandise Sold	2,697,400
Estimated Returns Inventory	15,300		Sales Salaries Expense	758,500
Office Supplies	12,000		Advertising Expense	208,600
Prepaid Insurance	9,300		Depreciation ExpenseStore Equipment	40,600
Office Equipment	280,200		Miscellaneous Selling Expense	17,800
Accumulated DepreciationOffice Equipment	190,400		Office Salaries Expense	414,100
Store Equipment	874,600		Rent Expense	61,100
Accumulated DepreciationStore Equipment	280,200		Insurance Expense	19,000
Accounts Payable	193,900		Depreciation ExpenseOffice Equipment	30,600
Customer Refunds Payable	30,600		Office Supplies Expense	11,200
Salaries Payable	12,400		Miscellaneous Administrative Exp.	8,100
Note Payable (final payment due 2032)	407,500		Interest Expense	12,400
Gerri Faber, Capital	685,700

Required:

1. Prepare a multiple-step income statement.

Kanpur Co. Income Statement For the Year Ended June 30, 2019
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, 2019
Gerri Faber, capital, July 1, 2018
Net income for the year
Withdrawals
Increase in owner's equity
Gerri Faber, capital, June 30, 2019

3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,300.

Kanpur Co. Balance Sheet June 30, 2019
Assets
Current assets:
Cash
Accounts receivable
Merchandise inventory
Estimated returns 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 2032)
Total liabilities
Owner's equity
Gerri Faber, capital
Total liabilities and owner's equity

4. Which type of income statement shows intermediate balances? Multiple-step