Multiple-Step Income Statement and Report Form of Balance Sheet The following se

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:

Required:

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 $15,700.

4. Which type of income statement shows intermediate balances?

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 Depreciation—Office Equipment 183,300 Office Salaries Expense 398,700 Store Equipment 842,100 Rent Expense 58,900 Accumulated Depreciation—Store Equipment 269,800 Insurance Expense 18,300 Accounts Payable 186,700 Depreciation Expense—Office Equipment 29,400 Customer Refunds Payable 29,400 Office Supplies Expense 10,800 Salaries Payable 11,900 Miscellaneous Administrative Exp. 7,800 Note Payable (final payment due 2032) 392,500 Interest Expense 11,900 Gerri Faber, Capital 663,300

Explanation / Answer

1. Multiple-step income statement. Kanpur Co. Income Statement For the Year Ended June 30, 2019 Sales 4431600 Cost of merchandise sold 2597000 Gross profit 1834600 Expenses: Selling expenses: Sales salaries expense 730300 Advertisement expense 200800 Depreciation expense-Store equipment 39100 Miscellaneous selling expense 17100 Total selling expenses 987300 Administrative expenses: Office salaries expense 398700 Rent expense 58900 Insurance expense 18300 Depreciation expense-Office equipment 29400 Office supplies expense 10800 Miscellaneous administrative expenses 7800 Total administrative expenses 523900 Total operating expenses 1511200 Net operating income 323400 Other income/(expense) Interest expense -11900 -11900 311500 2. Statement of owner's equity. Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2019 Balance as aon June 30, 2018 663300 Add: Net income for the year 311500 Less: Drawings 73400 238100 Balance as on June 30, 2019 901400 3. Balance sheet, assuming that the current portion of the note payable is $15,700. Kanpur Co. Balance Sheet June 30, 2019 Assets Current assets: Cash 122600 Accounts receivable 332700 Merchandize inventory 372600 Estimated returns inventory 14700 Office supplies 11600 Prepaid insurance 8900 Total current assets 863100 Property, plant and equipment: Office equipment 269800 Accumulated depreciation-Office equipment 183300 86500 Store equipment 842100 Accumulated depreciation-Store equipment 269800 572300 Total property, plant and equipment 658800 Total assets 1521900 Liabilities Current liabilities: Accounts payable 186700 Customer refunds payable 29400 Salaries payable 11900 Note-Payable-Current portion 15700 Total current liabilities 243700 Long-term liabilities: Note payable (392500-15700) 376800 Total liabilities 620500 Owner's equity 901400 Total liabilities and owner's equity 1521900 4. Which type of income statement shows intermediate balances? Multistep income statement.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.