The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the

Question:

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:

Cash $ 92,000 Retained Earnings $ 381,000 Accounts Receivable 450,000 Dividends 300,000 Inventory 370,000 Sales 8,925,000 Cost of Goods Sold Sales Salarles Expense Advertising Expense Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment 5,000 5,620,000 10,000 850,000 12,000 420,000 220,000 Depreciation Expense- Store Equipment Miscellaneous


Instructions

1. Prepare a multiple-step income statement.

2. Prepare a statement of stockholders’ equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.

4. Briefly explain how multiple and single-step income statements differ.

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Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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