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

Cash	$123,800		Gerri Faber, Drawing	$74,100
Accounts Receivable	336,000		Sales	4,475,700
Merchandise Inventory	376,300		Cost of Merchandise Sold	2,622,800
Estimated Returns Inventory	14,850		Sales Salaries Expense	737,500
Office Supplies	11,700		Advertising Expense	202,800
Prepaid Insurance	9,000		Depreciation ExpenseStore Equipment	39,500
Office Equipment	272,400		Miscellaneous Selling Expense	17,300
Accumulated DepreciationOffice Equipment	185,100		Office Salaries Expense	402,600
Store Equipment	850,400		Rent Expense	59,500
Accumulated DepreciationStore Equipment	272,400		Insurance Expense	18,400
Accounts Payable	188,500		Depreciation ExpenseOffice Equipment	29,700
Customer Refunds Payable	29,700		Office Supplies Expense	10,900
Salaries Payable	12,000		Miscellaneous Administrative Exp.	7,900
Note Payable (final payment due 2032)	395,000		Interest Expense	12,000
Gerri Faber, Capital	671,050

Required:

1. Prepare a multiple-step income statement.

Kanpur Co. Income Statement For the Year Ended June 30, 2019
Gerri Faber, capitalGross profitNet incomeSalesNote payable			fill in the blank 2
Accounts payableCost of merchandise soldInsurance expenseMerchandise inventoryStore equipment			fill in the blank 4
Accounts payableGross profitIncome from operationsNet incomeNet sales			fill in the blank 6
Expenses:
Selling expenses:
Cost of merchandise soldNet salesOffice suppliesMia Reynolds, DrawingSales salaries expense	fill in the blank 8
Accounts payableAdvertising expenseCashDepreciation expense-office equipmentMerchandise inventory	fill in the blank 10
Accounts receivableAccumulated depreciation-store equipmentGerri Faber, capitalDepreciation expense-store equipmentStore equipment	fill in the blank 12
Cost of merchandise soldMiscellaneous selling expenseOffice equipmentOffice salaries expenseSales	fill in the blank 14
Total selling expenses		fill in the blank 15
Administrative expenses:
Gerri Faber, capitalMerchandise inventoryOffice salaries expenseOffice suppliesSalaries Payable	fill in the blank 17
Accounts payableAccounts receivableNotes payableRent expenseSales	fill in the blank 19
Accounts payableCashInsurance expensePrepaid insuranceStore equipment	fill in the blank 21
Accumulated depreciation-office equipmentCashDepreciation expense-office equipmentOffice equipmentOffice supplies	fill in the blank 23
Accounts payableOffice equipmentOffice supplies expenseOffice suppliesSales	fill in the blank 25
Accounts receivableCashInterest expenseMiscellaneous administrative expenseNotes payable	fill in the blank 27
Total administrative expenses		fill in the blank 28
Total operating expenses			fill in the blank 29
Gross profitIncome from operationsLoss from operationsNet incomeNet loss			fill in the blank 31
Cost of merchandise soldGross profit:Net sales:Other expense:Other income:
Advertising expenseInterest expenseMiscellaneous selling expenseOffice supplies expenseSales discounts			fill in the blank 34
Gross profitIncome from operationsLoss from operationsNet incomeNet loss			fill in the blank 36

2. Prepare a statement of owner's equity.

Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2019
Increase in owner's equityWithdrawalsNet income for the yearGerri Faber, capital, July 1, 2018Gerri Faber, capital, June 30, 2019		fill in the blank 38
Decrease in owner's equityIncrease in owner's equityNet income for the yearGerri Faber, capital, July 1, 2018Gerri Faber, capital, June 30, 2019	fill in the blank 40
Decrease in owner's equityIncrease in owner's equityWithdrawalsGerri Faber, capital, July 1, 2018Gerri Faber, capital, June 30, 2019	fill in the blank 42
Decrease in owner's equityIncrease in owner's equityWithdrawalsGerri Faber, capital, July 1, 2018Gerri Faber, capital, June 30, 2019		fill in the blank 44
Increase in owner's equityWithdrawalsNet income for the yearGerri Faber, capital, July 1, 2018Gerri Faber, capital, June 30, 2019		fill in the blank 46

3. Prepare a balance sheet, assuming that the current portion of the note payable is $15,800.

Kanpur Co. Balance Sheet June 30, 2019
Assets
Current assets:
Accounts payableCashOffice equipmentRent expenseSales		fill in the blank 48
Accounts payableAccounts receivableGerri Faber, capitalInterest expenseStore equipment		fill in the blank 50
Accumulated depreciationInterest expenseMerchandise inventoryNote payableRent expense		fill in the blank 52
Estimated returns inventoryGerri Faber, capitalOffice equipmentOffice supplies expenseMiscellaneous expense		fill in the blank 54
Gerri Faber, capitalOffice equipmentOffice supplies expenseOffice suppliesMiscellaneous expense		fill in the blank 56
Accounts payableCost of merchandise soldInsurance expenseNote payablePrepaid insurance		fill in the blank 58
Total current assets			fill in the blank 59
Property, plant, and equipment:
Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies	fill in the blank 61
Less accounts payableLess accumulated depreciation-Office equipmentLess: CashLess depreciation expenseLess rent expense	fill in the blank 63	fill in the blank 64
CashCost of merchandise soldPrepaid insuranceSalaries payableStore equipment	fill in the blank 66
Less accumulated depreciation-Store equipmentLess depreciation expenseLess merchandise inventoryLess sales discountsLess store equipment	fill in the blank 68	fill in the blank 69
Total property, plant, and equipment			fill in the blank 70
Total assets			fill in the blank 71
Liabilities
Current liabilities:
Accounts payableAccounts receivableCashPrepaid insuranceSales		fill in the blank 73
Accounts receivableCashCustomer refunds payablePrepaid insuranceSales		fill in the blank 75
Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense		fill in the blank 77
CashCost of merchandise soldMerchandise inventoryNote payableOffice equipment		fill in the blank 79
Total current liabilities			fill in the blank 80
Long-term liabilities:
CashNote payableOffice equipmentPrepaid insuranceSales			fill in the blank 82
Total liabilities			fill in the blank 83
Owner's equity
Accounts receivableGerri Faber, capitalCashPrepaid insuranceCost of merchandise sold			fill in the blank 85
Total liabilities and owner's equity			fill in the blank 86

4. Which type of income statement shows intermediate balances?

Multiple-stepSingle-step