Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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, 20Y7:

Account Amount
Cash $109,900
Accounts Receivable 293,000
Inventory 334,000
Estimated Returns Inventory 5,000
Office Supplies 10,400
Prepaid Insurance 8,000
Office Equipment 241,800
Accumulated DepreciationOffice Equipment 164,300
Store Equipment 754,800
Accumulated DepreciationStore Equipment 241,800
Accounts Payable 164,300
Salaries Payable 10,700
Customer Refunds Payable 10,000
Estimated Coupons Payable 3,000
Note Payable (final payment due in 20 years) 352,500
Common Stock 60,600
Retained Earnings 484,300
Dividends 65,800
Sales 4,024,700
Cost of Goods Sold 2,328,000
Sales Salaries Expense 654,600
Advertising Expense 180,000
Depreciation ExpenseStore Equipment 35,100
Miscellaneous Selling Expense 15,400
Office Salaries Expense 357,400
Rent Expense 52,800
Insurance Expense 16,400
Depreciation ExpenseOffice Equipment 26,400
Office Supplies Expense 9,700
Miscellaneous Administrative Expense 7,000
Interest Expense 10,700

Required:

1. Prepare a multiple-step income statement.

Kanpur Co. Income Statement For the Year Ended June 30, 20Y7
Line Item Description Amount Amount Amount

CashInventoryPrepaid insuranceSales discountsSales

$fill in the blank 2

Accounts payableCost of goods soldInsurance expenseInventoryStore Equipment

fill in the blank 4

Accounts payableGross profitOperating incomeNet incomeNet sales

$fill in the blank 6
Expenses:
Selling expenses:

Cost of goods soldNet salesOffice suppliesSales discountsSales salaries expense

$fill in the blank 8

Accounts payableAdvertising expenseCashDepreciation expense-office equipmentSales returns and allowances

fill in the blank 10

Accounts receivableAccumulated depreciation-store equipmentCommon stockDepreciation expense-store equipmentStore equipment

fill in the blank 12

Cost of goods soldMiscellaneous selling expenseOffice equipmentOffice salaries expenseSales

fill in the blank 14
Total selling expenses $fill in the blank 15
Administrative expenses:

Common stockInventoryOffice salaries expenseOffice suppliesSales

$fill in the blank 17

Accounts payableAccounts receivableNotes payableRent expenseSales returns and allowances

fill in the blank 19

Accounts payableCashInsurance expensePrepaid insuranceSales discounts

fill in the blank 21

Accumulated depreciation-office equipmentCashDepreciation expense-office equipmentOffice equipmentOffice supplies

fill in the blank 23

Accounts payableOffice equipmentOffice supplies expenseOffice suppliesSales returns and allowances

fill in the blank 25

Accounts receivableInterest expenseMiscellaneous administrative expenseNotes payableSales

fill in the blank 27
Total administrative expenses fill in the blank 28
Total operating expenses fill in the blank 29

Gross profitOperating incomeLoss from operationsNet incomeNet loss

$fill in the blank 31

Cost of goods soldGross profit:Net sales:Other revenue and expense:Other income:

Advertising expenseInterest expenseMiscellaneous selling expenseOffice supplies expenseSales discounts

fill in the blank 34

Gross profitOperating incomeLoss from operationsNet incomeNet loss

$fill in the blank 36

2. Prepare a statement of stockholders equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.

Kanpur Co. Statement of Stockholders Equity For the Year Ended June 30, 20Y7
Line Item Description Common Stock Retained Earnings Total

Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income

$fill in the blank 38 $fill in the blank 39 $fill in the blank 40

Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet loss

fill in the blank 42 fill in the blank 43

Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsNet incomeNet loss

fill in the blank 45 fill in the blank 46

Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income

fill in the blank 48 fill in the blank 49

Balances, July 1, 20Y6Balances, June 30, 20Y7DividendsIssued common stockNet income

$fill in the blank 51 $fill in the blank 52 $fill in the blank 53

3. Prepare a balance sheet, assuming that the current portion of the note payable is $17,625.

KANPUR CO. Balance Sheet June 30, 20Y7
Assets
Current assets:

Accounts payableCashOffice equipmentRent expenseSales

$fill in the blank 55

Accounts payableAccounts receivableCommon stockInterest expenseStore equipment

fill in the blank 57

Accumulated depreciationInterest expenseInventoryNote payableSales returns and allowances

fill in the blank 59

Estimated returns inventoryOffice equipmentOffice supplies expenseOffice suppliesSales discounts

fill in the blank 61

Common stockOffice equipmentOffice supplies expenseOffice suppliesSales discounts

fill in the blank 63

Accounts payableCost of goods soldInsurance expenseNote payablePrepaid insurance

fill in the blank 65
Total current assets $fill in the blank 66
Property, plant, and equipment:

Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies

$fill in the blank 68

Accounts payableAccumulated depreciation-office equipmentCashDepreciation expenseRent expense

fill in the blank 70

Accounts payableBook value-office equipmentCashDepreciation expenseRent expense

$fill in the blank 72

CashCost of goods soldPrepaid insuranceSalaries payableStore equipment

$fill in the blank 74

Accumulated depreciation-store equipmentDepreciation expenseInventorySales discountsStore equipment

fill in the blank 76

Book value-store equipmentDepreciation expenseInventorySales discountsStore equipment

fill in the blank 78
Total property, plant, and equipment fill in the blank 79
Total assets $fill in the blank 80
Liabilities
Current liabilities:

Accounts payableAccounts receivableCashPrepaid insuranceSales returns and allowances

$fill in the blank 82

Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense

fill in the blank 84

Customer refunds payableInventoryNote payable (current portion)Office equipmentSales

fill in the blank 86

Estimated coupons payableInventoryNote payable (current portion)Office equipmentSales

fill in the blank 88

Cost of goods soldInventoryNote payable (current portion)Office equipmentSales

fill in the blank 90
Total current liabilities $fill in the blank 91
Long-term liabilities:

CashNote payable (long-term portion)Office equipmentPrepaid insuranceSales

fill in the blank 93
Total liabilities $fill in the blank 94
Stockholders' equity

Accounts receivableCommon stockCashPrepaid insuranceSales

$fill in the blank 96

Accounts receivableCashRetained earningsSalaries payableSales

fill in the blank 98
Total stockholders' equity fill in the blank 99
Total liabilities and stockholders' equity $fill in the blank 100

4. Which type of income statement shows intermediate balances?

Multiple-stepSingle-step

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Richard Lewis, David Pendrill

6th Edition

0273638335, 978-0273638339

More Books

Students also viewed these Accounting questions

Question

Sketch the graph of the function. g(x) = | |x| 1|

Answered: 1 week ago