Prepare a single-step income statement. KANPUR CO. Income Statement For the Year Ended June 30, 20Y7

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Single-step income statement and balance sheet

Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y7, are shown below.

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 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
Stockholders' equity
    $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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