Question

In: Accounting

Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...

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 $131,200 Gerri Faber, Drawing $78,600
Accounts Receivable 349,900 Sales 4,744,500
Merchandise Inventory 398,900 Cost of Merchandise Sold 2,780,300
Estimated Returns Inventory 15,750 Sales Salaries Expense 781,800
Office Supplies 12,400 Advertising Expense 215,000
Prepaid Insurance 9,600 Depreciation Expense—Store Equipment 41,900
Office Equipment 288,800 Miscellaneous Selling Expense 18,300
Accumulated Depreciation—Office Equipment 196,300 Office Salaries Expense 426,800
Store Equipment 901,500 Rent Expense 63,000
Accumulated Depreciation—Store Equipment 288,800 Insurance Expense 19,500
Accounts Payable 199,800 Depreciation Expense—Office Equipment 31,500
Customer Refunds Payable 31,500 Office Supplies Expense 11,600
Salaries Payable 12,800 Miscellaneous Administrative Exp. 8,400
Note Payable (final payment due 2032) 420,000 Interest Expense 12,800
Gerri Faber, Capital 703,850

Required:

1. Prepare a multiple-step income statement.

Kanpur Co.

Income Statement

For the Year Ended June 30, 2019
Expenses:
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total operating expenses

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 $16,800.

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?

Check My Work2 more Check

Solutions

Expert Solution

1.

Kanpur Co.
Income Statement
For the Year Ended June 30, 2019
Sales 4744500
Cost of goods sold 2780300
Gross profit 1964200
Expenses:
Selling expenses:
Sales salaries expense 781800
Advertising expense 215000
Depreciation expense-store equipment 41900
Miscellaneous selling expense 18300
Total selling expenses 1057000
Administrative expenses:
Office salaries expense 426800
Rent expense 63000
Insurance expense 19500
Depreciation expense-office equipment 31500
Office supplies expense 11600
Miscellaneous administrative expense 8400
Total administrative expenses 560800
Total operating expenses 1617800
Income from operations 346400
Other revenue and expense:
Interest expense -12800
Net income 333600

2.

Kanpur Co.
Statement of Owner's Equity
For the Year Ended June 30, 2019
Gerri Faber, Capital, beginning balance 703850
Add: Net income for the year 333600
1037450
Less: Gerri Faber, Drawing 78600
Gerri Faber, Capital, ending balance 958850

3.

Kanpur Co.
Balance Sheet
June 30, 2019
Assets
Current assets:
Cash 131200
Accounts receivable 349900
Merchandise inventory 398900
Estimated returns inventory 15750
Office supplies 12400
Prepaid insurance 9600
Total current assets 917750
Property, plant and equipment:
Office equipment 288800
Accumulated depreciation-office equipment -196300 92500
Store equipment 901500
Accumulated depreciation-store equipment -288800 612700
Total property, plant and equipment 705200
Total assets 1622950
Liabilities
Current liabilities:
Accounts payable 199800
Customer refunds payable 31500
Salaries payable 12800
Note payable (current portion) 16800
Total current liabilities 260900
Long-term liabilities:
Note payable 403200
Total liabilities 664100
Owner's equity
Gerri Faber, Capital 958850
Total liabilities and owner's equity 1622950

4. Multi-step income statement.


Related Solutions

Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Gloucester Co. for the fiscal year ended Auguest 31, 2016: Cash $126,700 Dividends 75,900 Accounts Receivable 340,800 Sales $4,640,500 Merchandise Inventory 385,100 Cost of Merchandise Sold 2,684,100 Office Supplies 11,900 Sales Salaries Expense 754,800 Prepaid Insurance 9,200 Advertising Expense 207,600 Office Equipment 278,800 Depreciation Expense— Store Equipment 40,400 Accumulated Depreciation— Office Equipment 189,500 Miscellaneous Selling Expense 17,700 Store...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
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...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $118,500 Retained Earnings 522,300 Accounts Receivable 318,800 Dividends 71,000 Inventory 360,200 Sales $4,340,400 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,510,600 Office Supplies 11,200 Sales Salaries Expense 706,000 Prepaid Insurance 8,600 Advertising Expense 194,100 Office Equipment 260,800 Depreciation Expense—    Store Equipment 37,800 Accumulated Depreciation—    Office Equipment...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
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 $118,100 Gerri Faber, Drawing $70,700 Accounts Receivable 314,800 Sales 4,268,700 Merchandise Inventory 358,900 Cost of Merchandise Sold 2,501,500 Estimated Returns Inventory 14,200 Sales Salaries Expense 703,400 Office Supplies 11,100 Advertising Expense 193,400 Prepaid Insurance 8,600 Depreciation Expense—Store Equipment 37,700 Office Equipment 259,800 Miscellaneous Selling Expense 16,500 Accumulated...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 20Y8: Cash $208,750 Retained Earnings (as of Sept. 30, 20Y7) $ 634,500 Accounts Receivable 375,000 Dividends 312,500 Inventory 945,000 Sales 8,917,500 Estimated Returns Inventory 87,500 Cost of Goods Sold 5,437,500 Office Supplies 37,500 Sales Salaries Expense 972,000 Prepaid Insurance 30,000 Advertising Expense 114,750 Office Equipment 288,000 Depreciation Expense— Store...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
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 $122,600 Gerri Faber, Drawing $73,400 Accounts Receivable 332,700 Sales 4,431,600 Merchandise Inventory 372,600 Cost of Merchandise Sold 2,597,000 Estimated Returns Inventory 14,700 Sales Salaries Expense 730,300 Office Supplies 11,600 Advertising Expense 200,800 Prepaid Insurance 8,900 Depreciation Expense—Store Equipment 39,100 Office Equipment 269,800 Miscellaneous Selling Expense 17,100 Accumulated...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $128,300 Retained Earnings 565,500 Accounts Receivable 345,100 Dividends 76,800 Inventory 390,000 Sales $4,699,500 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,718,300 Office Supplies 12,100 Sales Salaries Expense 764,400 Prepaid Insurance 9,400 Advertising Expense 210,200 Office Equipment 282,400 Depreciation Expense—    Store Equipment 41,000 Accumulated Depreciation—    Office Equipment...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $128,300 Retained Earnings 565,500 Accounts Receivable 345,100 Dividends 76,800 Inventory 390,000 Sales $4,699,500 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,718,300 Office Supplies 12,100 Sales Salaries Expense 764,400 Prepaid Insurance 9,400 Advertising Expense 210,200 Office Equipment 282,400 Depreciation Expense—    Store Equipment 41,000 Accumulated Depreciation—    Office Equipment...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2018: Cash $116,000 Retained Earnings 511,100 Accounts Receivable 309,200 Dividends 69,400 Inventory 352,500 Sales $4,247,600 Estimated Returns Inventory 22,500 Cost of Goods Sold 2,456,900 Office Supplies 10,900 Sales Salaries Expense 690,900 Prepaid Insurance 8,500 Advertising Expense 190,000 Office Equipment 255,200 Depreciation Expense—    Store Equipment 37,000 Accumulated Depreciation—    Office Equipment...
Multiple-Step Income Statement and Report Form of Balance Sheet The following selected accounts and their current...
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 $114,200 Gerri Faber, Drawing $68,400 Accounts Receivable 307,300 Sales 4,129,600 Merchandise Inventory 347,200 Cost of Merchandise Sold 2,420,000 Estimated Returns Inventory 13,700 Sales Salaries Expense 680,500 Office Supplies 10,800 Advertising Expense 187,100 Prepaid Insurance 8,300 Depreciation Expense—Store Equipment 36,500 Office Equipment 251,400 Miscellaneous Selling Expense 16,000 Accumulated...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT