Single-Step Income Statement

Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y5, are shown below.

Cash	$92,000		Gerri Faber, Drawing	$300,000
Accounts Receivable	450,000		Sales	8,925,000
Merchandise Inventory	375,000		Cost of Merchandise Sold	5,620,000
Office Supplies	10,000		Sales Salaries Expense	850,000
Prepaid Insurance	12,000		Advertising Expense	420,000
Office Equipment	220,000		Depreciation ExpenseStore Equipment	33,000
Accumulated DepreciationOffice Equipment	58,000		Miscellaneous Selling Expense	18,000
Store Equipment	650,000		Office Salaries Expense	540,000
Accumulated DepreciationStore Equipment	87,500		Rent Expense	48,000
Accounts Payable	38,500		Insurance Expense	24,000
Customer Refunds Payable	10,000		Depreciation ExpenseOffice Equipment	10,000
Salaries Payable	4,000		Office Supplies Expense	4,000
Note Payable (final payment due in eight years)	140,000		Miscellaneous Administrative Exp.	6,000
Gerri Faber, Capital	431,000		Interest Expense	12,000

Required:

1. Prepare a single-step income statement in the format shown in Exhibit 12 .

Single-Step Income Statement
For the Year Ended June 30, 20Y5Income StatementJune 30, 20Y5Kanpur Co. For the Year Ended June 30, 20Y5Income StatementJune 30, 20Y5Kanpur Co. For the Year Ended June 30, 20Y5Income StatementJune 30, 20Y5Kanpur Co.
1	Cost of merchandise soldGross profitNet incomeSalesSales discountsSales		$fill in the blank 5
2	Expenses:
3	Cost of merchandise soldMerchandise inventoryOffice suppliesSalaries payableSales returns and allowancesCost of merchandise sold	$fill in the blank 7
4	Accounts payableAccumulated depreciationMerchandise inventoryPrepaid insuranceSelling expenses	fill in the blank 9
5	Accounts receivableAdministrative expensesMerchandise inventoryStore equipmentNote payable	fill in the blank 11
6	Accounts payableInterest expenseOffice equipmentPrepaid insuranceSalaries payable	fill in the blank 13
7	Total expenses		fill in the blank 14
8	Gross profitIncome from operationsNet incomeNet lossNet sales		$fill in the blank 16

2. Prepare closing entries as of June 30, 20Y5. If an amount box does not require an entry, leave it blank.

Closing Entries
	Date	Account	Debit	Credit
1	June 30, 20Y5	CashInterest RevenueSalesSales DiscountsSales Returns and Allowances	fill in the blank 18	fill in the blank 19
2		Accounts ReceivableCashCost of Merchandise SoldOffice SuppliesSalaries Payable	fill in the blank 21	fill in the blank 22
3		Accounts PayableOffice SuppliesPrepaid InsuranceSalaries PayableSales Salaries Expense	fill in the blank 24	fill in the blank 25
4		Accounts ReceivableAdvertising ExpenseCashOffice EquipmentSales	fill in the blank 27	fill in the blank 28
5		Accumulated DepreciationDepreciation Expense-Store EquipmentInterest RevenueNote PayableStore Equipment	fill in the blank 30	fill in the blank 31
6		Accounts PayableMiscellaneous Selling ExpenseOffice SuppliesPrepaid InsuranceSales	fill in the blank 33	fill in the blank 34
7		Interest RevenueMerchandise InventoryOffice EquipmentOffice Salaries ExpenseSalaries Payable	fill in the blank 36	fill in the blank 37
8		Accounts ReceivableCashPrepaid InsuranceRent ExpenseSales	fill in the blank 39	fill in the blank 40
9		Accumulated DepreciationInsurance ExpenseNote PayableOffice EquipmentSales	fill in the blank 42	fill in the blank 43
10		Depreciation Expense-Office EquipmentOffice SuppliesPrepaid InsuranceSalaries PayableStore Equipment	fill in the blank 45	fill in the blank 46
11		CashMerchandise InventoryOffice EquipmentOffice SuppliesOffice Supplies Expense	fill in the blank 48	fill in the blank 49
12		Accounts ReceivableCashInterest RevenueMiscellaneous Administrative ExpenseSales	fill in the blank 51	fill in the blank 52
13		Accounts PayableInterest ExpenseMerchandise InventoryNotes PayableOffice Supplies	fill in the blank 54	fill in the blank 55
14		Cost of Merchandise SoldGerri Faber, CapitalGerri Faber, DrawingMerchandise InventorySales	fill in the blank 57	fill in the blank 58
15	June 30, 20Y5	CashGerri Faber, CapitalGerri Faber, DrawingInterest RevenueSales	fill in the blank 60	fill in the blank 61
16		Cost of Merchandise SoldGerri Faber, CapitalGerri Faber, DrawingMerchandise InventorySales	fill in the blank 63	fill in the blank 64