Question

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

Cash	$114,900		Gerri Faber, Drawing	$68,800
Accounts Receivable	311,900		Sales	4,154,700
Merchandise Inventory	349,300		Cost of Merchandise Sold	2,434,600
Estimated Returns Inventory	13,800		Sales Salaries Expense	684,600
Office Supplies	10,800		Advertising Expense	188,300
Prepaid Insurance	8,400		Depreciation Expense—Store Equipment	36,700
Office Equipment	252,900		Miscellaneous Selling Expense	16,100
Accumulated Depreciation—Office Equipment	171,900		Office Salaries Expense	373,800
Store Equipment	789,400		Rent Expense	55,200
Accumulated Depreciation—Store Equipment	252,900		Insurance Expense	17,100
Accounts Payable	175,000		Depreciation Expense—Office Equipment	27,600
Customer Refunds Payable	27,600		Office Supplies Expense	10,100
Salaries Payable	11,200		Miscellaneous Administrative Exp.	7,300
Note Payable (final payment due 2032)	367,500		Interest Expense	11,200
Gerri Faber, Capital	622,000

Required:

1. Prepare a multiple-step income statement.

2. Prepare a statement of owner's equity.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $14,700.

Answer 1