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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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