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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 | $111,400 |
Accounts Receivable | 297,000 |
Inventory | 338,600 |
Estimated Returns Inventory | 5,000 |
Office Supplies | 10,500 |
Prepaid Insurance | 8,100 |
Office Equipment | 245,100 |
Accumulated DepreciationOffice Equipment | 166,600 |
Store Equipment | 765,200 |
Accumulated DepreciationStore Equipment | 245,100 |
Accounts Payable | 166,600 |
Salaries Payable | 10,800 |
Customer Refunds Payable | 10,000 |
Estimated Coupons Payable | 3,000 |
Note Payable (final payment due in 20 years) | 355,000 |
Maya Kanpur, Capital | 554,600 |
Maya Kanpur, Drawing | 66,700 |
Sales | 4,080,100 |
Cost of Goods Sold | 2,360,000 |
Sales Salaries Expense | 663,700 |
Advertising Expense | 182,500 |
Depreciation ExpenseStore Equipment | 35,600 |
Miscellaneous Selling Expense | 15,600 |
Office Salaries Expense | 362,300 |
Rent Expense | 53,500 |
Insurance Expense | 16,600 |
Depreciation ExpenseOffice Equipment | 26,700 |
Office Supplies Expense | 9,800 |
Miscellaneous Administrative Expense | 7,100 |
Interest Expense | 10,800 |
Required:
1. Prepare a multiple-step income statement.
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 owners equity. Maya Kanpur invested an additional $7,500 in the business during the year ended June 30, 20Y7.
Line Item Description | Total |
---|---|
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearWithdrawals | $fill in the blank 38 |
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net loss for the yearWithdrawals | fill in the blank 40 |
Maya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearNet loss for the yearWithdrawals | fill in the blank 42 |
Additional investment by ownerMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net loss for the yearWithdrawals | fill in the blank 44 |
Issued common stockMaya Kanpur, capital, July 1, 20Y6Maya Kanpur, capital, June 30, 20Y7Net income for the yearWithdrawals | $fill in the blank 46 |
3. Prepare a balance sheet, assuming that the current portion of the note payable is $17,750.
Assets | |||
---|---|---|---|
Current assets: | |||
Accounts payableCashOffice equipmentRent expenseSales | $fill in the blank 48 | ||
Accounts payableAccounts receivableCommon stockInterest expenseStore equipment | fill in the blank 50 | ||
Accumulated depreciationInterest expenseInventoryNote payableSales returns and allowances | fill in the blank 52 | ||
Estimated returns inventoryOffice equipmentOffice supplies expenseOffice suppliesSales discounts | fill in the blank 54 | ||
Common stockOffice equipmentOffice supplies expenseOffice suppliesSales discounts | fill in the blank 56 | ||
Accounts payableCost of goods soldInsurance expenseNote payablePrepaid insurance | fill in the blank 58 | ||
Total current assets | $fill in the blank 59 | ||
Property, plant, and equipment: | |||
Accounts receivableCashOffice equipmentOffice supplies expenseOffice supplies | $fill in the blank 61 | ||
Accounts payableAccumulated depreciation-office equipmentCashDepreciation expenseRent expense | fill in the blank 63 | ||
Accounts payableBook value-office equipmentCashDepreciation expenseRent expense | $fill in the blank 65 | ||
CashCost of goods soldPrepaid insuranceSalaries payableStore equipment | $fill in the blank 67 | ||
Accumulated depreciation-store equipmentDepreciation expenseInventorySales discountsStore equipment | fill in the blank 69 | ||
Book value-store equipmentDepreciation expenseInventorySales discountsStore equipment | fill in the blank 71 | ||
Total property, plant, and equipment | fill in the blank 72 | ||
Total assets | $fill in the blank 73 | ||
Liabilities | |||
Current liabilities: | |||
Accounts payableAccounts receivableCashPrepaid insuranceSales returns and allowances | $fill in the blank 75 | ||
Accumulated depreciationOffice salaries expenseOffice suppliesSalaries payableSales salaries expense | fill in the blank 77 | ||
Customer refunds payableInventoryNote payable (current portion)Office equipmentSales | fill in the blank 79 | ||
Estimated coupons payableInventoryNote payable (current portion)Office equipmentSales | fill in the blank 81 | ||
Cost of goods soldInventoryNote payable (current portion)Office equipmentSales | fill in the blank 83 | ||
Total current liabilities | $fill in the blank 84 | ||
Long-term liabilities: | |||
CashNote payable (long-term portion)Office equipmentPrepaid insuranceSales | fill in the blank 86 | ||
Total liabilities | $fill in the blank 87 | ||
Owner's equity | |||
CashMaya Kanpur, capitalOffice equipmentPrepaid insuranceSales | fill in the blank 89 | ||
Total liabilities and owner's equity | $fill in the blank 90 |
4. Which type of income statement shows intermediate balances?
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