The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2018:

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

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92,000 Retained Earnings 50,000 Dividends 370,000 Sales 381,000 300,000 925,000 5,620,000 850,000 420,000 Cash Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- 5,000 Cost of Goods Sold 10,000 Sales Salaries Expense 2,000 Advertising Expense 220,000 Depreciation Expense- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense 33,000 18,000 540,000 48,000 24,000 58,000 650,000 7,500 Insurance Expense 38,500 Deprecation Expense- Store Equipment Accounts Payable Customers Refunds Payable Salaries Payable Note Payable Office Equipment Office Supplies Expense Miscellaneous Administrative 10,000 4,000 10,000 4,000 40,000Exp (final payment due 2034) Common Stock 6,000 12,000 0,000 Interest Expense