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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	$111,400
Accounts Receivable	297,000
Inventory	338,600
Estimated Returns Inventory	5,000
Office Supplies	10,500
Prepaid Insurance	8,100
Office Equipment	245,100
Accumulated DepreciationOffice Equipment	166,600
Store Equipment	765,200
Accumulated DepreciationStore Equipment	245,100
Accounts Payable	166,600
Salaries Payable	10,800
Customer Refunds Payable	10,000
Estimated Coupons Payable	3,000
Note Payable (final payment due in 20 years)	355,000
Maya Kanpur, Capital	554,600
Maya Kanpur, Drawing	66,700
Sales	4,080,100
Cost of Goods Sold	2,360,000
Sales Salaries Expense	663,700
Advertising Expense	182,500
Depreciation ExpenseStore Equipment	35,600
Miscellaneous Selling Expense	15,600
Office Salaries Expense	362,300
Rent Expense	53,500
Insurance Expense	16,600
Depreciation ExpenseOffice Equipment	26,700
Office Supplies Expense	9,800
Miscellaneous Administrative Expense	7,100
Interest Expense	10,800

Required:

1. Prepare a multiple-step income statement.

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 owners equity. Maya Kanpur invested an additional $7,500 in the business during the year ended June 30, 20Y7.

Line Item Description	Total
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearWithdrawals	$fill in the blank 38
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net loss for the yearWithdrawals	fill in the blank 40
Maya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearNet loss for the yearWithdrawals	fill in the blank 42
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net loss for the yearWithdrawals	fill in the blank 44
Issued common stockMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearWithdrawals	$fill in the blank 46

3. Prepare a balance sheet, assuming that the current portion of the note payable is $17,750.

Assets
Current assets:
Accounts payableCashOffice equipmentRent expenseSales		$fill in the blank 48
Accounts payableAccounts receivableCommon stockInterest expenseStore equipment		fill in the blank 50
Accumulated depreciationInterest expenseInventoryNote payableSales returns and allowances		fill in the blank 52
Estimated returns inventoryOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 54
Common stockOffice equipmentOffice supplies expenseOffice suppliesSales discounts		fill in the blank 56
Accounts payableCost of goods soldInsurance expenseNote payablePrepaid insurance		fill in the blank 58
Total current assets			$fill in the blank 59
Property, plant, and equipment:
Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies	$fill in the blank 61
Accounts payableAccumulated depreciation-office equipmentCashDepreciation expenseRent expense	fill in the blank 63
Accounts payableBook value-office equipmentCashDepreciation expenseRent expense		$fill in the blank 65
CashCost of goods soldPrepaid insuranceSalaries payableStore equipment	$fill in the blank 67
Accumulated depreciation-store equipmentDepreciation expenseInventorySales discountsStore equipment	fill in the blank 69
Book value-store equipmentDepreciation expenseInventorySales discountsStore equipment		fill in the blank 71
Total property, plant, and equipment			fill in the blank 72
Total assets			$fill in the blank 73
Liabilities
Current liabilities:
Accounts payableAccounts receivableCashPrepaid insuranceSales returns and allowances		$fill in the blank 75
Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense		fill in the blank 77
Customer refunds payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 79
Estimated coupons payableInventoryNote payable (current portion)Office equipmentSales		fill in the blank 81
Cost of goods soldInventoryNote payable (current portion)Office equipmentSales		fill in the blank 83
Total current liabilities			$fill in the blank 84
Long-term liabilities:
CashNote payable (long-term portion)Office equipmentPrepaid insuranceSales			fill in the blank 86
Total liabilities			$fill in the blank 87
Owner's equity
CashMaya Kanpur, capitalOffice equipmentPrepaid insuranceSales			fill in the blank 89
Total liabilities and owner's equity			$fill in the blank 90

4. Which type of income statement shows intermediate balances?

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