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, 20Y5: Cash $122,300 Gerri Faber, Drawing $73,200 Accounts Receivable 319,200 Sales 4,419,800 Merchandise Inventory 2,590,100 Office Supplies 728,300 Prepaid Insurance 200,300 371,600 Cost of Merchandise Sold 11,500 Sales Salaries Expense 8,900 Advertising Expense 269,000 Depreciation Expense-Store Equipment 182,800 Miscellaneous Selling Expense 839,800 Office Salaries Expense Office Equipment 39,000 Accumulated Depreciation-Office Equipment 17,100 Store Equipment 397,600 269,000 Rent Expense 58,700 Accumulated Depreciation-Store Equipment Accounts Payable 186,200 Insurance Expense 18,200 Customer Refunds Payable 29,400 Depreciation Expense-Office Equipment 29,400 Salaries Payable 11,900 Office Supplies Expense 10,800 Note Payable (final payment due in eight years) 390,000 Miscellaneous Administrative Exp. 7,800 Gerri Faber, Capital 635,600 Interest Expense 11,900 Required: 1. Prepare a multiple-step income statement. Kanpur Co. Income Statement For the Year Ended June 30, 2045 Sales of Cost of merchandise sold Gross profit ? Expenses: Selling expenses: Sales salaries expense Advertising expense ? Depreciation expense-store equipment Miscellaneous selling expense ? Total selling expenses Administrative expenses: Office salaries expense Rent expense Insurance expense Depreciation expense-office equipment Office supplies expense ? Miscellaneous administrative expense ? Total administrative expenses Total operating expenses Income from operations ? Other expense: Interest expense Net income 2. Prepare a statement of owner's equity. Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2045 Gerri Faber, capital, July 1, 2014 Net income for the year Withdrawals Increase in owner's equity ? Gerri Faber, capital, June 30, 2015 ? 3. Prepare a balance sheet, assuming that the current portion of the note payable is $15,600. Kanpur Co. Balance Sheet June 30, 2015 Assets Current assets: Cash Accounts receivable Merchandise inventory ? Office supplies Prepaid insurance Total current assets Property, plant, and equipment: Office equipment Less accumulated depreciation-office equipment Store equipment Less accumulated depreciation Store equipment Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Customer refunds payable Salaries payable Note payable (current portion) Total current liabilities Long-term liabilities: Note payable (final payment due in eight years) ? Total liabilities Owner's equity Gerri Faber, capital Total liabilities and owner's equity