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, 20Y7:

Account	Amount
Cash	$109,900
Accounts Receivable	293,000
Inventory	334,000
Estimated Returns Inventory	5,000
Office Supplies	10,400
Prepaid Insurance	8,000
Office Equipment	241,800
Accumulated DepreciationOffice Equipment	164,300
Store Equipment	754,800
Accumulated DepreciationStore Equipment	241,800
Accounts Payable	164,300
Salaries Payable	10,700
Customer Refunds Payable	10,000
Estimated Coupons Payable	3,000
Note Payable (final payment due in 20 years)	352,500
Common Stock	60,600
Retained Earnings	484,300
Dividends	65,800
Sales	4,024,700
Cost of Goods Sold	2,328,000
Sales Salaries Expense	654,600
Advertising Expense	180,000
Depreciation ExpenseStore Equipment	35,100
Miscellaneous Selling Expense	15,400
Office Salaries Expense	357,400
Rent Expense	52,800
Insurance Expense	16,400
Depreciation ExpenseOffice Equipment	26,400
Office Supplies Expense	9,700
Miscellaneous Administrative Expense	7,000
Interest Expense	10,700

Required:

1. Prepare a multiple-step income statement.

Kanpur Co. Income Statement For the Year Ended June 30, 20Y7

Line Item Description	Amount	Amount	Amount
CashInventoryPrepaid insuranceSales discountsSales			$fill in the blank 2
Accounts payableCost of goods soldInsurance expenseInventoryStore Equipment			fill in the blank 4
Accounts payableGross profitOperating incomeNet incomeNet sales			$fill in the blank 6
Expenses:
Selling expenses:
Cost of goods soldNet salesOffice suppliesSales discountsSales salaries expense	$fill in the blank 8
Accounts payableAdvertising expenseCashDepreciation expense-office equipmentSales returns and allowances	fill in the blank 10
Accounts receivableAccumulated depreciation-store equipmentCommon stockDepreciation expense-store equipmentStore equipment	fill in the blank 12
Cost of goods soldMiscellaneous selling expenseOffice equipmentOffice salaries expenseSales	fill in the blank 14
Total selling expenses		$fill in the blank 15
Administrative expenses:
Common stockInventoryOffice salaries expenseOffice suppliesSales	$fill in the blank 17
Accounts payableAccounts receivableNotes payableRent expenseSales returns and allowances	fill in the blank 19
Accounts payableCashInsurance expensePrepaid insuranceSales discounts	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 returns and allowances	fill in the blank 25
Accounts receivableInterest expenseMiscellaneous administrative expenseNotes payableSales	fill in the blank 27
Total administrative expenses		fill in the blank 28
Total operating expenses			fill in the blank 29
Gross profitOperating incomeLoss from operationsNet incomeNet loss			$fill in the blank 31
Cost of goods soldGross profit:Net sales:Other revenue and expense:Other income:
Advertising expenseInterest expenseMiscellaneous selling expenseOffice supplies expenseSales discounts			fill in the blank 34
Gross profitOperating incomeLoss from operationsNet incomeNet loss			$fill in the blank 36

2. Prepare a statement of stockholders equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.

Kanpur Co. Statement of Stockholders Equity For the Year Ended June 30, 20Y7

Line Item Description	Common Stock	Retained Earnings	Total
Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income	$fill in the blank 38	$fill in the blank 39	$fill in the blank 40
Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet loss	fill in the blank 42		fill in the blank 43
Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsNet incomeNet loss		fill in the blank 45	fill in the blank 46
Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income		fill in the blank 48	fill in the blank 49
Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income	$fill in the blank 51	$fill in the blank 52	$fill in the blank 53

3. Prepare a balance sheet, assuming that the current portion of the note payable is $17,625.

KANPUR CO. Balance Sheet June 30, 20Y7

Assets
Current assets:
Accounts payableCashOffice equipmentRent expenseSales		$fill in the blank 55
Accounts payableAccounts receivableCommon stockInterest expenseStore equipment		fill in the blank 57
Accumulated depreciationInterest expenseInventoryNote payableSales returns and allowances		fill in the blank 59
Estimated returns inventoryOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 61
Common stockOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 63
Accounts payableCost of goods soldInsurance expenseNote payablePrepaid insurance		fill in the blank 65
Total current assets			$fill in the blank 66
Property, plant, and equipment:
Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies	$fill in the blank 68
Accounts payableAccumulated depreciation-office equipmentCashDepreciation expenseRent expense	fill in the blank 70
Accounts payableBook value-office equipmentCashDepreciation expenseRent expense		$fill in the blank 72
CashCost of goods soldPrepaid insuranceSalaries payableStore equipment	$fill in the blank 74
Accumulated depreciation-store equipmentDepreciation expenseInventorySales discountsStore equipment	fill in the blank 76
Book value-store equipmentDepreciation expenseInventorySales discountsStore equipment		fill in the blank 78
Total property, plant, and equipment			fill in the blank 79
Total assets			$fill in the blank 80
Liabilities
Current liabilities:
Accounts payableAccounts receivableCashPrepaid insuranceSales returns and allowances		$fill in the blank 82
Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense		fill in the blank 84
Customer refunds payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 86
Estimated coupons payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 88
Cost of goods soldInventoryNote payable (current portion)Office equipmentSales		fill in the blank 90
Total current liabilities			$fill in the blank 91
Long-term liabilities:
CashNote payable (long-term portion)Office equipmentPrepaid insuranceSales			fill in the blank 93
Total liabilities			$fill in the blank 94
Stockholders' equity
Accounts receivableCommon stockCashPrepaid insuranceSales		$fill in the blank 96
Accounts receivableCashRetained earningsSalaries payableSales		fill in the blank 98
Total stockholders' equity			fill in the blank 99
Total liabilities and stockholders' equity			$fill in the blank 100

4. Which type of income statement shows intermediate balances?

Multiple-stepSingle-step