The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2016: Cash $ 92,000 Accounts Receivable 450,000 Merchandise Inventory 375,000 Office Supplies 10,000 Prepaid Insurance 12,000 Office Equipment 220,000 Accumulated Depreciation-Office Equipment 58,000 Store Equipment 650,000 Accumulated Depreciation-Store Equipment 87,500 Accounts Payable 48,500 Salaries Payable 4,000 Note Payable (current portion) 7,000 Note Payable (final payment due 2032) 140,000 Gerri Faber, Capital 431,000 Gerri Faber, Drawing 300,000 Sales 8,925,000 Cost of Merchandise Sold 5,620,000 Sales Salaries Expense 850,000 Advertising Expense 420,000 Depreciation Expense-Store Equipment 33,000 Miscellaneous Selling Expense 18,000 Office Salaries Expense 540,000 Rent Expense 48,000 Insurance Expense 24,000 Depreciation Expense-Office Equipment 10,000 Office Supplies Expense 4,000 Miscellaneous Administrative Expense 6,000 Interest Expense 12,000

Required: 1. Prepare a multiple-step income statement. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.*

2. Prepare a statement of owners equity.*

3. Prepare a report form of balance sheet. Less or Plus will automatically appear if it is required.* 4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ. * Be sure to complete the statement headings. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required.

Labels
Administrative expenses
Current assets
Current liabilities
For the Year Ended June 30, 2016
Long-term liabilities
June 30, 2016
Operating expenses
Other income and expense
Property, plant, and equipment
Selling expenses
Amount Descriptions
Gross profit
Income from operations
Increase in owners equity
Gerri Faber, capital, July 1, 2015
Gerri Faber, capital, June 30, 2016
Less withdrawals
Net income
Net income for the year
Net loss
Total administrative expenses
Total assets
Total current assets
Total current liabilities
Total liabilities
Total liabilities and owners equity
Total operating expenses
Total property, plant, and equipment
Total selling expenses