FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Multiple-Step Income Statement and Report Form of
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
| Cash | $120,200 | Gerri Faber, Drawing | $72,000 | |
| 326,200 | Sales | 4,344,900 | ||
| Merchandise Inventory | 365,300 | Cost of Merchandise Sold | 2,546,100 | |
| Estimated Returns Inventory | 14,450 | Sales Salaries Expense | 716,000 | |
| Office Supplies | 11,300 | Advertising Expense | 196,900 | |
| Prepaid Insurance | 8,800 | 38,400 | ||
| Office Equipment | 264,500 | Miscellaneous Selling Expense | 16,800 | |
| 179,700 | Office Salaries Expense | 390,900 | ||
| Store Equipment | 825,600 | Rent Expense | 57,700 | |
| Accumulated Depreciation—Store Equipment | 264,500 | Insurance Expense | 17,900 | |
| Accounts Payable | 183,000 | Depreciation Expense—Office Equipment | 28,900 | |
| Customer Refunds Payable | 28,900 | Office Supplies Expense | 10,600 | |
| Salaries Payable | 11,700 | Miscellaneous Administrative Exp. | 7,700 | |
| Note Payable (final payment due 2032) | 385,000 | Interest Expense | 11,700 | |
| Gerri Faber, Capital | 650,250 |
Required:
1. Prepare a multiple-step income statement.
| Kanpur Co. Income Statement For the Year Ended June 30, 2019 |
|||
|---|---|---|---|
| Sales | fill in the blank 2 | ||
| fill in the blank 4 | |||
| fill in the blank 6 | |||
| Expenses: | |||
| Selling expenses: | |||
| fill in the blank 8 | |||
| fill in the blank 10 | |||
| fill in the blank 12 | |||
| fill in the blank 14 | |||
| Total selling expenses | fill in the blank 15 | ||
| Administrative expenses: | |||
| fill in the blank 17 | |||
| fill in the blank 19 | |||
| fill in the blank 21 | |||
| fill in the blank 23 | |||
| fill in the blank 25 | |||
| fill in the blank 27 | |||
| Total administrative expenses | fill in the blank 28 | ||
| Total operating expenses | fill in the blank 29 | ||
| fill in the blank 31 | |||
| fill in the blank 34 | |||
| fill in the blank 36 |
2. Prepare a statement of owner's equity.
| Kanpur Co. Statement of Owner's Equity For the Year Ended June 30, 2019 |
||
|---|---|---|
| fill in the blank 38 | ||
| fill in the blank 40 | ||
| fill in the blank 42 | ||
| fill in the blank 44 | ||
| fill in the blank 46 |
3. Prepare a balance sheet, assuming that the current portion of the note payable is $15,400.
| Kanpur Co. Balance Sheet June 30, 2019 |
|||
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| fill in the blank 48 | |||
| fill in the blank 50 | |||
| fill in the blank 52 | |||
| fill in the blank 54 | |||
| fill in the blank 56 | |||
| fill in the blank 58 | |||
| Total current assets | fill in the blank 59 | ||
| Property, plant, and equipment: | |||
| fill in the blank 61 | |||
| fill in the blank 63 | fill in the blank 64 | ||
| fill in the blank 66 | |||
| fill in the blank 68 | fill in the blank 69 | ||
| Total property, plant, and equipment | fill in the blank 70 | ||
| Total assets | fill in the blank 71 | ||
| Liabilities | |||
| Current liabilities: | |||
| fill in the blank 73 | |||
| fill in the blank 75 | |||
| fill in the blank 77 | |||
| fill in the blank 79 | |||
| Total current liabilities | fill in the blank 80 | ||
| Long-term liabilities: | |||
| fill in the blank 82 | |||
| Total liabilities | fill in the blank 83 | ||
| Owner's equity | |||
| fill in the blank 85 | |||
| Total liabilities and owner's equity | fill in the blank 86 |
4. Which type of income statement shows intermediate balances?
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