Question

Multiple-step income statement and balance sheet

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

Cash	$125,600		Retained Earnings	$553,800
Accounts Receivable	335,000		Dividends	75,200
Inventory	381,900		Sales	4,601,900
Estimated Returns Inventory	5,000		Cost of Goods Sold	2,661,800
Office Supplies	11,800		Sales Salaries Expense	748,500
Prepaid Insurance	9,200		Advertising Expense	205,800
Office Equipment	276,500		Depreciation Expense—    Store Equipment	40,100
Accumulated Depreciation—    Office Equipment	187,900		Miscellaneous Selling Expense	17,600
Store Equipment	863,100		Office Salaries Expense	408,600
Accumulated Depreciation—    Store Equipment	276,500		Rent Expense	60,300
Accounts Payable	191,300		Depreciation Expense—    Office Equipment	30,200
Customer Refunds Payable	10,000		Insurance Expense	18,700
Salaries Payable	12,200		Office Supplies Expense	11,100
Note Payable    (final payment due 2024)	402,500		Miscellaneous Administrative Exp.	8,000
Common Stock	70,100		Interest Expense	12,200

Prepare a balance sheet, assuming that the current portion of the note payable is $20,125.

Answer 1