Multiple-step income statement and balance sheet
The following selected accounts and their current balancesappear in the ledger of Kanpur Co. for the fiscal year ended June30, 20Y7:
| Cash | $126,400 | | Retained Earnings | $557,100 |
| Accounts Receivable | 337,000 | | Dividends | 75,700 |
| Inventory | 384,200 | | Sales | 4,629,600 |
| Estimated Returns Inventory | 5,000 | | Cost of Goods Sold | 2,677,900 |
| Office Supplies | 11,900 | | Sales Salaries Expense | 753,000 |
| Prepaid Insurance | 9,200 | | Advertising Expense | 207,100 |
| Office Equipment | 278,200 | | Depreciation Expense—
   Store Equipment |
40,300 |
Accumulated Depreciation—
   Office Equipment |
189,000 | | Miscellaneous Selling Expense | 17,700 |
| Store Equipment | 868,300 | | Office Salaries Expense | 411,100 |
Accumulated Depreciation—
   Store Equipment |
278,200 | | Rent Expense | 60,700 |
| Accounts Payable | 192,500 | | Depreciation Expense—
   Office Equipment |
30,400 |
| Customer Refunds Payable | 10,000 | | Insurance Expense | 18,800 |
| Salaries Payable | 12,300 | | Office Supplies Expense | 11,100 |
Note Payable
   (final payment due 2024) |
405,000 | | Miscellaneous Administrative Exp. | 8,100 |
| Common Stock | 70,700 | | Interest Expense | 12,300 |
Required:
1. Prepare a multiple-step incomestatement.
Kanpur Co.
Income Statement
For the Year Ended June 30, 20Y7 |
|---|
| Sales | | | $ |
| Cost of goods 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 | | | |
| Operating income | | | $ |
| Other revenue and expense: | | | |
| Interest expense | | | |
| Net income | | | $ |
2. Prepare a statement of stockholders’ equity.Additional common stock of $7,500 was issued during the year endedJune 30, 20Y7.
Kanpur Co.
Statement of Stockholders’ Equity
For the Year Ended June 30, 20Y7 |
|---|
| Common Stock | RetainedEarnings | Total |
| Balances, July 1, 20Y6 | $ | $ | $ |
| Issued common stock | | | |
| Net income | | | |
| Dividends | | | |
| Balances, June 30, 20Y7 | $ | $ | $ |
3. Prepare a balance sheet, assuming that thecurrent portion of the note payable is $20,250.
KANPUR CO.
Balance Sheet
June 30, 20Y7 |
|---|
| Assets |
| Current assets: | | | |
| Cash | | $ | |
| Accounts receivable | | | |
| Inventory | | | |
| Estimated returns inventory | | | |
| Office supplies | | | |
| Prepaid insurance | | | |
| Total current assets | | | $ |
| Property, plant, and equipment: | | | |
| Office equipment | $ | | |
| Accumulated depreciation-office equipment | | | |
| Book value-office equipment | | $ | |
| Store equipment | $ | | |
| Accumulated depreciation-store equipment | | | |
| Book value-store equipment | | | |
| Total property, plant, and equipment | | | |
| Total assets | | | $ |
| Liabilities |
| Current liabilities: | | | |
| Accounts payable | | $ | |
| Salaries payable | | | |
| Customer refunds payable | | | |
| Note payable (current portion) | | | |
| Total current liabilities | | | $ |
| Long-term liabilities: | | | |
| Note payable (long-term portion) | | | |
| Total liabilities | | | $ |
| Stockholders' equity |
| Common stock | | $ | |
| Retained earnings | | | |
| Total stockholders' equity | | | |
| Total liabilities and stockholders' equity | | | $ |
