Obj. 3 PR 5-5B 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, 2018: 1. Net income $1,340,000 $ 381,000 Retained Earnings $92,000 300,000 Cash Dividends 450,000 Accounts Receivable 8,925,000 Sales 370,000 Inventory Estimated Returms Inventory Office Supplies Prepaid Insurance GEMERAL LEDGER 5,620,000 EXCEL TEMPLATE Cost of Goods Sold 5,000 850,000 Sales Salaries Expense Advertising Expense Depreciation Expense- 10,000 420,000 12000 Office Equipment Accumulated Depreciation- 220,000 Store Equipment 33,000 Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Note Payable (final payment due 2034) Common Stock Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense Miscellaneous Administrative 58.000 18,000 650,000 540,000 48,000 87,500 38,500 24,000 10,000 4,000 10,000 4,000 140,000 Exp Interest Expense 50,000 6,000 12,000 279 Chapter 5 Accounting for Merchandising Businesses Instructions 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000. Briefly explain how multiple-step and single-step income statements differ. 4