Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Textbook Question
Chapter 6, Problem 6.5BPR
Multiple step income statement and
The following selected accounts anti their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
| Cash | $92,000 |
| 450,000 | |
| Merchandise Inventory | 370,000 |
| Estimated Returns Inventory | 5,000 |
| Office Supplies | 10,000 |
| Prepaid Insurance | 12,000 |
| Office Equipment | 220,000 |
| 58,000 | |
| Store Equipment | 650,000 |
| Accumulated Depreciation—Store Equipment | 87,500 |
| Accounts Payable | 38,500 |
| Customer Refunds Payable | 10,000 |
| Salaries Payable | 4,000 |
| Note Payable | |
| (final payment due 2032) | 140,000 |
| Gerri Faber. Capital | 431,000 |
| Gerri Faber, Drawing | $300,000 |
| Sales | 8,925,00 |
| Cost of Merchandise Sold | 5,620,00 |
| Sales Salaries Expense | 850,000 |
| Advertising Expense | 420,000 |
| Depreciation Expense— Store Equipment | 33,000 |
| Miscellaneous Selling Expense | 18,000 |
| Office Salaries Expense | 540,000 |
| Rent Expense | 48,000 |
| Insurance Expense | 24,000 |
| Depredation Expense—Office Equipment | 10,000 |
| Office Supplies Expense | 4,000 |
| Miscellaneous Administrative Exp. | 6,000 |
| Interest Expense | 12,000 |
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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Multiple-Step Income Statement and Report Form of Balance Sheet
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Gerri Faber, Drawing
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Accounts Receivable
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Sales
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Merchandise Inventory
363,700
Cost of Merchandise Sold
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Sales Salaries Expense
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Office Supplies
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Advertising Expense
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Office Supplies Expense
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Chapter 6 Solutions
Accounting
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