Question

1. Multiple-Step Income Statement and Report Form of Balance Sheet

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

   Cash	$118,100		Gerri Faber, Drawing	$70,700
   Accounts Receivable	314,800		Sales	4,268,700
   Merchandise Inventory	358,900		Cost of Merchandise Sold	2,501,500
   Estimated Returns Inventory	14,200		Sales Salaries Expense	703,400
   Office Supplies	11,100		Advertising Expense	193,400
   Prepaid Insurance	8,600		Depreciation Expense—Store Equipment	37,700
   Office Equipment	259,800		Miscellaneous Selling Expense	16,500
   Accumulated Depreciation—Office Equipment	176,600		Office Salaries Expense	384,000
   Store Equipment	811,100		Rent Expense	56,700
   Accumulated Depreciation—Store Equipment	259,800		Insurance Expense	17,600
   Accounts Payable	179,800		Depreciation Expense—Office Equipment	28,400
   Customer Refunds Payable	28,400		Office Supplies Expense	10,400
   Salaries Payable	11,500		Miscellaneous Administrative Exp.	7,500
   Note Payable (final payment due 2032)	377,500		Interest Expense	11,500
   Gerri Faber, Capital	633,600

   Required:

   1. Prepare a multiple-step income statement.

   Kanpur Co. Income Statement For the Year Ended June 30, 2019
   Expenses:
   Selling expenses:
   Total selling expenses
   Administrative expenses:
   Total administrative expenses
   Total operating expenses

   2. Prepare a statement of owner's equity.

   Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2019

   3. Prepare a balance sheet, assuming that the current portion of the note payable is $15,100.

   Kanpur Co. Balance Sheet June 30, 2019
   Assets
   Current assets:
   Total current assets
   Property, plant, and equipment:
   Total property, plant, and equipment
   Total assets
   Liabilities
   Current liabilities:
   Total current liabilities
   Long-term liabilities:
   Total liabilities
   Owner's equity
   Total liabilities and owner's equity

   4. Which type of income statement shows intermediate balances?
   
   

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Answer 1