The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:

Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
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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Cash Accounts Receivable Merchandise Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- 92,000 450,000 370,000 Gerri Faber, Drawing Sales Cost of Merchandise Sold al Salaries Expense Advertising Expense 300,000 8,925,000 5,620,000 850,000 420,000 5,000 10,000 220,000 58,000 12,000Depreciation Expense- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense 33,000 18,000 540,000 48,000 24,000 650,000 87,500Depreciation Expense- 38,500 Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable Office Equipment Office Supplies Expense Miscellaneous Administrative Exp. Interest Expense 10,000 4,000 6,000 12,000 10,000 4,000 (final payment due 2032) Gerri Faber, Capital 140,000 431,000