The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2014:

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a retained earnings statement.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $7,000.
4. Briefly explain
(a) How multiple-step and single-step income statements differ
(b) How report-form and account-form balance sheetsdiffer.

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92,000 Sales 450,000 Sales Returns and Allowances 375,000 Sales Discounts Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- $9,175,000 160,000 90,000 5,620,000 850,000 420,000 10,000 Cst of Merchandise Sold 12,000 S Sries Expense 220,000 Advertising Expense Depreciation Expense- Office Equipment Store Equipment Accumulated Depreciation- 33,000 18,000 540,000 48,000 24,000 58,000 650,000 Store Equipment Miscellaneous Selling Expense Office Salaries Expense 87,500 Rent Expense 48, Store Equipment Accounts Payable Salaries Payable Note Payable 500 Insurance Expense 4,000 Depreciation Expense Office Equipment Office Supplies Expense (final payment due 2032) Capital Stock Retained Earnings Dividends 140,000 81,000 3 300,000 10,000 4,000 50,000 Miscellaneous Administrative xp 6,000 12,000 Interest Expense