1. The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:

   Cash	$122,700		Retained Earnings	$541,000
   Accounts Receivable	333,100		Dividends	73,500
   Inventory	373,100		Sales	4,495,900
   Estimated Returns Inventory	5,000		Cost of Goods Sold	2,600,500
   Office Supplies	11,600		Sales Salaries Expense	731,300
   Prepaid Insurance	9,000		Advertising Expense	201,100
   Office Equipment	270,100		Depreciation ExpenseStore Equipment	39,200
   Accumulated DepreciationOffice Equipment	183,600		Miscellaneous Selling Expense	17,200
   Store Equipment	843,200		Office Salaries Expense	399,200
   Accumulated DepreciationStore Equipment	270,100		Rent Expense	58,900
   Accounts Payable	183,900		Insurance Expense	18,300
   Salaries Payable	11,900		Depreciation ExpenseOffice Equipment	29,500
   Customer Refunds Payable	10,000		Office Supplies Expense	10,800
   Estimated Coupons Payable	3,000		Miscellaneous Administrative Expense	7,800
   Note Payable (final payment due in 20 years)	392,500		Interest Expense	11,900
   Common Stock	75,100

   Required:

   1. Prepare a multiple-step income statement.

   Kanpur Co. Income Statement For the Year Ended June 30, 20Y7
   CashInventoryPrepaid insuranceSales discountsSales			$fill in the blank 2
   Accounts payableCost of goods soldInsurance expenseInventoryStore Equipment			fill in the blank 4
   Accounts payableGross profitOperating incomeNet incomeNet sales			$fill in the blank 6
   Expenses:
   Selling expenses:
   Cost of goods soldNet salesOffice suppliesSales discountsSales salaries expense	$fill in the blank 8
   Accounts payableAdvertising expenseCashDepreciation expense-office equipmentSales returns and allowances	fill in the blank 10
   Accounts receivableAccumulated depreciation-store equipmentCommon stockDepreciation expense-store equipmentStore equipment	fill in the blank 12
   Cost of goods soldMiscellaneous selling expenseOffice equipmentOffice salaries expenseSales	fill in the blank 14
   Total selling expenses		$fill in the blank 15
   Administrative expenses:
   Common stockInventoryOffice salaries expenseOffice suppliesSales	$fill in the blank 17
   Accounts payableAccounts receivableNotes payableRent expenseSales returns and allowances	fill in the blank 19
   Accounts payableCashInsurance expensePrepaid insuranceSales discounts	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 returns and allowances	fill in the blank 25
   Accounts receivableInterest expenseMiscellaneous administrative expenseNotes payableSales	fill in the blank 27
   Total administrative expenses		fill in the blank 28
   Total operating expenses			fill in the blank 29
   Gross profitOperating incomeLoss from operationsNet incomeNet loss			$fill in the blank 31
   Cost of goods soldGross profit:Net sales:Other revenue and expense:Other income:
   Advertising expenseInterest expenseMiscellaneous selling expenseOffice supplies expenseSales discounts			fill in the blank 34
   Gross profitOperating incomeLoss from operationsNet incomeNet loss			$fill in the blank 36

   2. Prepare a statement of stockholders equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.

   Kanpur Co. Statement of Stockholders Equity For the Year Ended June 30, 20Y7
   	Common Stock	Retained Earnings	Total
   Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income	$fill in the blank 38	$fill in the blank 39	$fill in the blank 40
   Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet loss	fill in the blank 42		fill in the blank 43
   Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsNet incomeNet loss		fill in the blank 45	fill in the blank 46
   Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income		fill in the blank 48	fill in the blank 49
   Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income	$fill in the blank 51	$fill in the blank 52	$fill in the blank 53

   3. Prepare a balance sheet, assuming that the current portion of the note payable is $19,625.

   KANPUR CO. Balance Sheet June 30, 20Y7
   Assets
   Current assets:
   Accounts payableCashOffice equipmentRent expenseSales		$fill in the blank 55
   Accounts payableAccounts receivableCommon stockInterest expenseStore equipment		fill in the blank 57
   Accumulated depreciationInterest expenseInventoryNote payableSales returns and allowances		fill in the blank 59
   Estimated returns inventoryOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 61
   Common stockOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 63
   Accounts payableCost of goods soldInsurance expenseNote payablePrepaid insurance		fill in the blank 65
   Total current assets			$fill in the blank 66
   Property, plant, and equipment:
   Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies	$fill in the blank 68
   Accounts payableAccumulated depreciation-office equipmentCashDepreciation expenseRent expense	fill in the blank 70
   Accounts payableBook value-office equipmentCashDepreciation expenseRent expense		$fill in the blank 72
   CashCost of goods soldPrepaid insuranceSalaries payableStore equipment	$fill in the blank 74
   Accumulated depreciation-store equipmentDepreciation expenseInventorySales discountsStore equipment	fill in the blank 76
   Book value-store equipmentDepreciation expenseInventorySales discountsStore equipment		fill in the blank 78
   Total property, plant, and equipment			fill in the blank 79
   Total assets			$fill in the blank 80
   Liabilities
   Current liabilities:
   Accounts payableAccounts receivableCashPrepaid insuranceSales returns and allowances		$fill in the blank 82
   Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense		fill in the blank 84
   Customer refunds payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 86
   Estimated coupons payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 88
   Cost of goods soldInventoryNote payable (current portion)Office equipmentSales		fill in the blank 90
   Total current liabilities			$fill in the blank 91
   Long-term liabilities:
   CashNote payable (long-term portion)Office equipmentPrepaid insuranceSales			fill in the blank 93
   Total liabilities			$fill in the blank 94
   Stockholders' equity
   Accounts receivableCommon stockCashPrepaid insuranceSales		$fill in the blank 96
   Accounts receivableCashRetained earningsSalaries payableSales		fill in the blank 98
   Total stockholders' equity			fill in the blank 99
   Total liabilities and stockholders' equity			$fill in the blank 100

   4. Which type of income statement shows intermediate balances?

   Multiple-step or Single-step