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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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