The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7: Cash $ 92,000 $ 381,000 Retained Earnings Dividends Accounts Receivable 450,000 300,000 Inventory Estimated Returns Inventory Office Supplies 370,000 Sales 8,925,000 5,000 Cost of Goods Sold 5,620,000 Sales Salaries Expense Advertising Expense 10,000 850,000 Prepaid Insurance 12,000 420,000 Office Equipment Accumulated Depreciation- 220,000 Depreciation Expense- Store Equipment 33,000 Office Equipment 58,000 Miscellaneous Selling Expense 18,000 (Continued) Store Equipment $650,000 Office Salaries Expense $540,000 Accumulated Depreciation- Store Equipment Accounts Payable Rent Expense 48,000 87,500 Insurance Expense 24,000 38,500 Depreciation Expense- Customers Refunds Payable 10,000 Office Equipment 10,000 Office Supplies Expense Salaries Payable Note Payable (final payment due in 20 years) 4,000 4,000 Miscellaneous Administrative 140,000 Expense G,000 Common Stock 50,000 Interest Expense 12,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. Additional common stock of $7,500 was issued dur- ing the year ended June 30, 20Y7. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000. 4. -Briefly explain how multiple and single-step income statements differ.
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7: Cash $ 92,000 $ 381,000 Retained Earnings Dividends Accounts Receivable 450,000 300,000 Inventory Estimated Returns Inventory Office Supplies 370,000 Sales 8,925,000 5,000 Cost of Goods Sold 5,620,000 Sales Salaries Expense Advertising Expense 10,000 850,000 Prepaid Insurance 12,000 420,000 Office Equipment Accumulated Depreciation- 220,000 Depreciation Expense- Store Equipment 33,000 Office Equipment 58,000 Miscellaneous Selling Expense 18,000 (Continued) Store Equipment $650,000 Office Salaries Expense $540,000 Accumulated Depreciation- Store Equipment Accounts Payable Rent Expense 48,000 87,500 Insurance Expense 24,000 38,500 Depreciation Expense- Customers Refunds Payable 10,000 Office Equipment 10,000 Office Supplies Expense Salaries Payable Note Payable (final payment due in 20 years) 4,000 4,000 Miscellaneous Administrative 140,000 Expense G,000 Common Stock 50,000 Interest Expense 12,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. Additional common stock of $7,500 was issued dur- ing the year ended June 30, 20Y7. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000. 4. -Briefly explain how multiple and single-step income statements differ.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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, 20Y7:
Cash
$ 92,000
$ 381,000
Retained Earnings
Dividends
Accounts Receivable
450,000
300,000
Inventory
Estimated Returns Inventory
Office Supplies
370,000
Sales
8,925,000
5,000
Cost of Goods Sold
5,620,000
Sales Salaries Expense
Advertising Expense
10,000
850,000
Prepaid Insurance
12,000
420,000
Office Equipment
Accumulated Depreciation-
220,000
Depreciation Expense-
Store Equipment
33,000
Office Equipment
58,000
Miscellaneous Selling Expense
18,000
(Continued)
Transcribed Image Text:Store Equipment
$650,000
Office Salaries Expense
$540,000
Accumulated Depreciation-
Store Equipment
Accounts Payable
Rent Expense
48,000
87,500
Insurance Expense
24,000
38,500
Depreciation Expense-
Customers Refunds Payable
10,000
Office Equipment
10,000
Office Supplies Expense
Salaries Payable
Note Payable
(final payment due in 20 years)
4,000
4,000
Miscellaneous Administrative
140,000
Expense
G,000
Common Stock
50,000
Interest Expense
12,000
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of stockholders' equity. Additional common stock of $7,500 was issued dur-
ing the year ended June 30, 20Y7.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.
4.
-Briefly explain how multiple and single-step income statements differ.
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