The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the
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Question:
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
Cash | $112,500 | Gerri Faber, Drawing | $67,400 | |
Accounts Receivable | 302,600 | Sales | 4,066,600 | |
Merchandise Inventory | 341,900 | Cost of Merchandise Sold | 2,383,000 | |
Estimated Returns Inventory | 13,500 | Sales Salaries Expense | 670,100 | |
Office Supplies | 10,600 | Advertising Expense | 184,300 | |
Prepaid Insurance | 8,200 | Depreciation Expense—Store Equipment | 35,900 | |
Office Equipment | 247,500 | Miscellaneous Selling Expense | 15,700 | |
Accumulated Depreciation—Office Equipment | 168,200 | Office Salaries Expense | 365,800 | |
Store Equipment | 772,700 | Rent Expense | 54,000 | |
Accumulated Depreciation—Store Equipment | 247,500 | Insurance Expense | 16,800 | |
Accounts Payable | 171,300 | Depreciation Expense—Office Equipment | 27,000 | |
Customer Refunds Payable | 27,000 | Office Supplies Expense | 9,900 | |
Salaries Payable | 10,900 | Miscellaneous Administrative Exp. | 7,200 | |
Note Payable (final payment due 2032) | 360,000 | Interest Expense | 10,900 | |
Gerri Faber, Capital | 606,000 |
Required:
1. Prepare a multiple-step income statement.
Kanpur Co. Income Statement For the Year Ended June 30, 2019 | |||
---|---|---|---|
Sales | |||
Cost of merchandise 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 | |||
Income from operations | |||
Other expense: | |||
Interest expense | |||
Net income |
2. Prepare a statement of owner's equity.
Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2019 | ||
---|---|---|
3. Prepare a balance sheet, assuming that the current portion of the note payable is $14,400.
Kanpur Co. Balance Sheet June 30, 2019 | |||
---|---|---|---|
Assets | |||
Current assets: | |||
Total current assets | |||
Property, plant, and equipment: | |||
Total property, plant, and equipment | |||
Total assets | |||
Liabilities | |||
Current liabilities: | |||
Total current liabilities | |||
Long-term liabilities: | |||
Total liabilities | |||
Owner's equity | |||
Total liabilities and owner's equity |
4. Which type of income statement shows intermediate balances?
Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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