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, 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 StatementFor 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 StatementFor 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 SheetJune 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?

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, 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 StatementFor 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 StatementFor 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 SheetJune 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, 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?

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