Question

Multiple-Step Income Statement and Report Form of Balance Sheet

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

Cash	$128,400		Gerri Faber, Drawing	$76,900
Accounts Receivable	348,500		Sales	4,642,200
Merchandise Inventory	390,300		Cost of Merchandise Sold	2,720,400
Estimated Returns Inventory	15,400		Sales Salaries Expense	765,000
Office Supplies	12,100		Advertising Expense	210,400
Prepaid Insurance	9,400		Depreciation Expense—Store Equipment	41,000
Office Equipment	282,600		Miscellaneous Selling Expense	18,000
Accumulated Depreciation—Office Equipment	192,000		Office Salaries Expense	417,600
Store Equipment	882,100		Rent Expense	61,700
Accumulated Depreciation—Store Equipment	282,600		Insurance Expense	19,100
Accounts Payable	195,500		Depreciation Expense—Office Equipment	30,800
Customer Refunds Payable	30,800		Office Supplies Expense	11,300
Salaries Payable	12,500		Miscellaneous Administrative Exp.	8,200
Note Payable (final payment due 2032)	410,000		Interest Expense	12,500
Gerri Faber, Capital	696,100

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 $16,400.

Answer 1