Prepare a single-step income statement. KANPUR CO. Income Statement For the Year Ended June 30, 20Y7
Prepare a single-step income statement. KANPUR CO. Income Statement For the Year Ended June 30, 20Y7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Single-step income statement and
Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y7, are shown below.
Cash | $92,000 | $381,000 | ||
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 | 33,000 | ||
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 in 20 years) | 140,000 | Miscellaneous Administrative Expense | 6,000 | |
Common Stock | 50,000 | Interest Expense | 12,000 |
Required:
1. Prepare a single-step income statement.
KANPUR CO. Income Statement For the Year Ended June 30, 20Y7 |
||
---|---|---|
Sales | $fill in the blank 2 | |
Expenses: | ||
Cost of goods sold | $fill in the blank 4 | |
Accumulated depreciation | fill in the blank 6 | |
Administrative expenses | fill in the blank 8 | |
Interest expense | fill in the blank 10 | |
Total expenses | fill in the blank 11 | |
Net income | $fill in the blank 13 |
2. Prepare a statement of stockholders’ equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.
Kanpur Co. Statement of Stockholders’ Equity For the Year Ended June 30, 20Y7 |
|||
---|---|---|---|
Common Stock | Retained Earnings | Total | |
$fill in the blank 15 | $fill in the blank 16 | $fill in the blank 17 | |
fill in the blank 19 | fill in the blank 20 | ||
fill in the blank 22 | fill in the blank 23 | ||
fill in the blank 25 | fill in the blank 26 | ||
$fill in the blank 28 | $fill in the blank 29 | $fill in the blank 30 |
3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.
KANPUR CO. Balance Sheet June 30, 20Y7 |
|||
---|---|---|---|
Assets | |||
Current assets: | |||
$fill in the blank 32 | |||
fill in the blank 34 | |||
fill in the blank 36 | |||
fill in the blank 38 | |||
fill in the blank 40 | |||
fill in the blank 42 | |||
Total current assets | $fill in the blank 43 | ||
Property, plant, and equipment: | |||
$fill in the blank 45 | |||
fill in the blank 47 | |||
$fill in the blank 49 | |||
$fill in the blank 51 | |||
fill in the blank 53 | |||
fill in the blank 55 | |||
Total property, plant, and equipment | fill in the blank 56 | ||
Total assets | $fill in the blank 57 | ||
Liabilities | |||
Current liabilities: | |||
$fill in the blank 59 | |||
fill in the blank 61 | |||
fill in the blank 63 | |||
fill in the blank 65 | |||
Total current liabilities | $fill in the blank 66 | ||
Long-term liabilities: | |||
fill in the blank 68 | |||
Total liabilities | $fill in the blank 69 | ||
$fill in the blank 71 | |||
fill in the blank 73 | |||
Total stockholders' equity | fill in the blank 74 | ||
Total liabilities and stockholders' equity | $fill in the blank 75 |
4. Prepare closing entries as of June 30, 20Y7 in the order as presented in the chapter. If an amount box does not require an entry, leave it blank.
Date | Account | Debit | Credit |
---|---|---|---|
20Y7 | |||
June 30 | fill in the blank 77 | fill in the blank 78 | |
fill in the blank 80 | fill in the blank 81 | ||
fill in the blank 83 | fill in the blank 84 | ||
fill in the blank 86 | fill in the blank 87 | ||
fill in the blank 89 | fill in the blank 90 | ||
fill in the blank 92 | fill in the blank 93 | ||
fill in the blank 95 | fill in the blank 96 | ||
fill in the blank 98 | fill in the blank 99 | ||
fill in the blank 101 | fill in the blank 102 | ||
fill in the blank 104 | fill in the blank 105 | ||
fill in the blank 107 | fill in the blank 108 | ||
fill in the blank 110 | fill in the blank 111 | ||
fill in the blank 113 | fill in the blank 114 | ||
fill in the blank 116 | fill in the blank 117 | ||
June 30 | fill in the blank 119 | fill in the blank 120 | |
fill in the blank 122 | fill in the blank 123 |
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