Current assets: Cash 130,600 Accounts receivable 348,300 Inventory 387,100 Estimated returns inventory 5,000 Office supplies 12,300 Prepaid insurance 9,500 Total current assets 892,800 Property, plant, and equipment: Office equipment Accumulated depreciation office equipment 287,500 195,400 Book value-office equipment 482,900 Store equipment 897,400 Accumulated depreciation-store equipment 287,500 Book value-store equipment Total property, plant, and equipment 1,184,90 Total assets Liabilities Current liabilities: Accounts payable 195,500 Salaries payable 12,700 Customer refunds payable 10,000 Estimated coupons payable 3,000 Note payable (current portion) 417,500 Total current liabilities 6,387,00 Long-term liabilities: Note payable (long-term portion) 417,500 $ 1,056,20 Total liabilities Stockholders' equity Common stock 74,100 Retained earnings 575,800 Total stockholders' equity 649,900 Total liabilities and stockholders' equity 1,706,10 4. Which type of income statement shows intermediate balances? Multiple-step Depreciation expense-office equipment Office supplies expense 31,400 11,500 8,300 Miscellaneous administrative expense Total administrative expenses 558,300 Total operating expenses 1,610,60 Operating income Other revenue and expense: Interest expense 12,700 Net income 2. Prepare a statement of stockholders' equity. Additional common stock of $7,500 was issued during the year ended June 30, 2017 Kanpur Co. Statement of Stockholders' Equity For the Year Ended June 30, 2017 Common Stock Retained Earnings Balances, July 1, 2016 Total Issued common stock Net income Dividends Balances, June 30, 2047 3. Prepare a balance sheet, assuming that the current portion of the note payable is $20,875. KANPUR CO. Balance Sheet June 30, 2017 Assets Current assets: Cash 130,600 Accounts receivable 348,300 Inventory 387,100 Estimated returns inventory 5,000 Office supplies 12,300 Prepaid insurance 9,500 Total current assets 892,800 Property, plant, and equipment: Office equipment 287,500 5, 6, 8 & 9 Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2017: Cash $130,600 Retained Earnings $575,800 Accounts Receivable 348,300 Dividends 78,200 Inventory 397,100 Sales 4,785,100 Estimated Returns Inventory 5,000 Cost of Goods Sold 2,767,800 Office Supplies 12,300 Sales Salaries Expense 778,300 Prepaid Insurance 9,500 Advertising Expense 214,000 Office Equipment 287,500 Depreciation Expense-Store Equipment 41,700 Accumulated Depreciation Office Equipment 195,400 Miscellaneous Selling Expense 18,300 Store Equipment 897,400 Office Salaries Expense 424,900 Accumulated Depreciation-Store Equipment 287,500 Rent Expense 62,700 Accounts Payable 195,900 Insurance Expense 19,500 Salaries Payable 12,700 Depreciation Expense-Office Equipment 31,400 Customer Refunds Payable 10,000 Office Supplies Expense 11,500 Estimated Coupons Payable 3,000 Miscellaneous Administrative Expense 8,300 Note Payable (final payment due in 20 years) 417,500 Interest Expense 12,700 Common Stock 74,100 Required: 1. Prepare a multiple-step income statement. Kanpur Co. Income Statement For the Year Ended June 30, 2017 Sales 4,785,10 2,767,80 Cost of goods sold Gross profit 7,552,90 Expenses: Selling expenses: Sales salaries expense 778,300 214,000 Advertising expense Depreciation expense-store equipment 41,700 Miscellaneous selling expense 18,300 Total selling expenses 1,052,30 Administrative expenses: Office salaries expense 424,900 Rent expense 62,700 Insurance expense 19.509
