Multiple-Step Income Statement and Report Form of Balance Sheet The following…
- May 25, 2021/ Finance
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2018:
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Cash |
$92,000 |
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Retained Earnings |
$381,000 |
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Accounts Receivable |
450,000 |
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Dividends |
300,000 |
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Inventory |
370,000 |
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Sales |
8,925,000 |
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Estimated Returns Inventory |
5,000 |
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Cost of Goods Sold |
5,620,000 |
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Office Supplies |
10,000 |
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Sales Salaries Expense |
850,000 |
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Prepaid Insurance |
12,000 |
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Advertising Expense |
420,000 |
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Office Equipment |
220,000 |
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Depreciation Expense—Store Equipment |
33,000 |
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Accumulated Depreciation—Office Equipment |
58,000 |
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Miscellaneous Selling Expense |
18,000 |
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Store Equipment |
650,000 |
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Office Salaries Expense |
540,000 |
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Accumulated Depreciation—Store Equipment |
87,500 |
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Rent Expense |
48,000 |
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Accounts Payable |
38,500 |
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Insurance Expense |
24,000 |
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Customers Refunds Payable |
10,000 |
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Depreciation Expense—Office Equipment |
10,000 |
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Salaries Payable |
4,000 |
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Office Supplies Expense |
4,000 |
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Note Payable (final payment due 2034) |
140,000 |
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Miscellaneous Administrative Exp. |
6,000 |
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Common Stock |
50,000 |
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Interest Expense |
12,000 |
Required:
1. Prepare a multiple-step income statement.
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KANPUR CO. |
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Expenses: |
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Selling expenses: |
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Total selling expenses |
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Administrative expenses: |
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Total administrative expenses |
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Total operating expenses |
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2. Prepare a retained earnings statement.
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KANPUR CO. |
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3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.
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KANPUR CO. |
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Assets |
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Current assets: |
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Total current assets |
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Property, plant and equipment: |
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Total property, plant and equipment |
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Total assets |
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Liabilities |
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Current liabilities: |
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Total current liabilities |
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Long-term liabilities: |
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Total liabilities |
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Stockholders' equity |
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Total stockholders' equity |
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Total liabilities and stockholders' equity |
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4. Which type of income statement shows intermediate balances?
