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

Multiple-Step Income Statement and Report Form of Balance Sheet

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The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2018:

Cash

$92,000

 

Retained Earnings

$381,000

Accounts Receivable

450,000

 

Dividends

300,000

Inventory

370,000

 

Sales

8,925,000

Estimated Returns Inventory

5,000

 

Cost of Goods Sold

5,620,000

Office Supplies

10,000

 

Sales Salaries Expense

850,000

Prepaid Insurance

12,000

 

Advertising Expense

420,000

Office Equipment

220,000

 

Depreciation Expense—Store Equipment

33,000

Accumulated Depreciation—Office Equipment

58,000

 

Miscellaneous Selling Expense

18,000

Store Equipment

650,000

 

Office Salaries Expense

540,000

Accumulated Depreciation—Store Equipment

87,500

 

Rent Expense

48,000

Accounts Payable

38,500

 

Insurance Expense

24,000

Customers Refunds Payable

10,000

 

Depreciation Expense—Office Equipment

10,000

Salaries Payable

4,000

 

Office Supplies Expense

4,000

Note Payable (final payment due 2034)

140,000

 

Miscellaneous Administrative Exp.

6,000

Common Stock

50,000

 

Interest Expense

12,000

 

Required:

1.  Prepare a multiple-step income statement.

KANPUR CO.
Income Statement
For the Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

Selling expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total selling expenses

 

 

 

Administrative expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total administrative expenses

 

 

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.  Prepare a retained earnings statement.

 

KANPUR CO.
Retained Earnings Statement
For the Year Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.  Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.

 

KANPUR CO.
Balance Sheet
June 30, 2018

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

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

 

Total liabilities and stockholders' equity

 

 

 

4.  Which type of income statement shows intermediate balances?