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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2019, are presented in Problem 6-5B.
Instructions
1. Prepare a single-step income statement in the format shown in Exhibit 12.
2. Prepare closing entries as of June 30, 2019.
![The following selected accounts and their current balances appear in the ledger of Kanpur
Co. for the fiscal year ended June 30, 2019:
$ 92,000
$ 300,000
8,925,000
Gerri Faber, Drawing
Cash
Accounts Receivable
Sales
450,000
Merchandise Inventory
Estimated Returns Inventory
Office Supplies
Prepaid Insurance
Office Equipment
Accumulated Depreciation-
Office Equipment
Store Equipment
Accumulated Depreciation-
370,000
Cost of Merchandise Sold
5,620,000
Sales Salaries Expense
5,000
850,000
Advertising Expense
10,000
420,000
12,000
Depreciation Expense-
220,000
Store Equipment
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
33,000
18,000
58,000
540,000
48,000
650,000
Insurance Expense
24,000
Store Equipment
87,500
Depreciation Expense-
Accounts Payable
Customer Refunds Payable
Salaries Payable
Note Payable
(final payment due 2032)
Gerri Faber, Capital
Office Equipment
Office Supplies Expense
Miscellaneous Administrative Exp.
38,500
10,000
10,000
4,000
4,000
6,000
Interest Expense
12,000
140,000
431,000
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is
$7,000.
4.
Briefly explain how multiple-step and single-step income statements differ.](https://content.bartleby.com/qna-images/question/5701a85d-9f75-419b-8c0c-75d10ed9aa8a/e8658d43-9ebd-4e9e-9324-8e3b10975275/141i162.jpeg)
Transcribed Image Text:The following selected accounts and their current balances appear in the ledger of Kanpur
Co. for the fiscal year ended June 30, 2019:
$ 92,000
$ 300,000
8,925,000
Gerri Faber, Drawing
Cash
Accounts Receivable
Sales
450,000
Merchandise Inventory
Estimated Returns Inventory
Office Supplies
Prepaid Insurance
Office Equipment
Accumulated Depreciation-
Office Equipment
Store Equipment
Accumulated Depreciation-
370,000
Cost of Merchandise Sold
5,620,000
Sales Salaries Expense
5,000
850,000
Advertising Expense
10,000
420,000
12,000
Depreciation Expense-
220,000
Store Equipment
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
33,000
18,000
58,000
540,000
48,000
650,000
Insurance Expense
24,000
Store Equipment
87,500
Depreciation Expense-
Accounts Payable
Customer Refunds Payable
Salaries Payable
Note Payable
(final payment due 2032)
Gerri Faber, Capital
Office Equipment
Office Supplies Expense
Miscellaneous Administrative Exp.
38,500
10,000
10,000
4,000
4,000
6,000
Interest Expense
12,000
140,000
431,000
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is
$7,000.
4.
Briefly explain how multiple-step and single-step income statements differ.
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what is Gerri Faber, Capital
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