The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y5:

Cash	$124,600		Gerri Faber, Drawing	$74,600
Accounts Receivable	325,400		Sales	4,505,400
Merchandise Inventory	378,800		Cost of Merchandise Sold	2,640,200
Office Supplies	11,700		Sales Salaries Expense	742,400
Prepaid Insurance	9,100		Advertising Expense	204,200
Office Equipment	274,300		Depreciation ExpenseStore Equipment	39,800
Accumulated DepreciationOffice Equipment	186,400		Miscellaneous Selling Expense	17,400
Store Equipment	856,100		Office Salaries Expense	405,300
Accumulated DepreciationStore Equipment	274,300		Rent Expense	59,900
Accounts Payable	189,800		Insurance Expense	18,600
Customer Refunds Payable	29,900		Depreciation ExpenseOffice Equipment	29,900
Salaries Payable	12,100		Office Supplies Expense	11,000
Note Payable (final payment due in eight years)	397,500		Miscellaneous Administrative Exp.	8,000
Gerri Faber, Capital	648,000		Interest Expense	12,100

Required:

1. Prepare a multiple-step income statement.

Kanpur Co. Income Statement For the Year Ended June 30, 20Y5
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, 20Y5
Increase in owner's equityWithdrawalsNet income for the yearGerri Faber, capital, July 1, 20Y4Gerri Faber, capital, June 30, 20Y5		$fill in the blank 38
Decrease in owner's equityIncrease in owner's equityNet income for the yearGerri Faber, capital, July 1, 20Y4Gerri Faber, capital, June 30, 20Y5	$fill in the blank 40
Decrease in owner's equityIncrease in owner's equityWithdrawalsGerri Faber, capital, July 1, 20Y4Gerri Faber, capital, June 30, 20Y5	fill in the blank 42
Decrease in owner's equityIncrease in owner's equityWithdrawalsGerri Faber, capital, July 1, 20Y4Gerri Faber, capital, June 30, 20Y5		fill in the blank 44
Increase in owner's equityWithdrawalsNet income for the yearGerri Faber, capital, July 1, 20Y4Gerri Faber, capital, June 30, 20Y5		$fill in the blank 46

3. Prepare a balance sheet, assuming that the current portion of the note payable is $15,900.

Kanpur Co. Balance Sheet June 30, 20Y5
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
Gerri Faber, capitalOffice equipmentOffice supplies expenseOffice suppliesMiscellaneous expense		fill in the blank 54
Accounts payableCost of merchandise soldInsurance expenseNote payablePrepaid insurance		fill in the blank 56
Total current assets			$fill in the blank 57
Property, plant, and equipment:
Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies	$fill in the blank 59
Less accounts payableLess accumulated depreciation-Office equipmentLess: CashLess depreciation expenseLess rent expense	fill in the blank 61	$fill in the blank 62
CashCost of merchandise soldPrepaid insuranceSalaries payableStore equipment	$fill in the blank 64
Less accumulated depreciation-Store equipmentLess depreciation expenseLess merchandise inventoryLess sales discountsLess store equipment	fill in the blank 66	fill in the blank 67
Total property, plant, and equipment			fill in the blank 68
Total assets			$fill in the blank 69
Liabilities
Current liabilities:
Accounts payableAccounts receivableCashPrepaid insuranceSales		$fill in the blank 71
Accounts receivableCashCustomer refunds payablePrepaid insuranceSales		fill in the blank 73
Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense		fill in the blank 75
CashCost of merchandise soldMerchandise inventoryNote payable (current portion)Office equipment		fill in the blank 77
Total current liabilities			$fill in the blank 78
Long-term liabilities:
CashNote payable (final payment due in eight years)Office equipmentPrepaid insuranceSales			fill in the blank 80
Total liabilities			$fill in the blank 81
Owner's equity
Accounts receivableGerri Faber, capitalCashPrepaid insuranceCost of merchandise sold			fill in the blank 83
Total liabilities and owner's equity			$fill in the blank 84

4. Which type of income statement shows intermediate balances?

Multiple-step or Single-step