Question

BOOK Calculator 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, 2019: Cash $92,000 Gerri Faber, Drawing 450,000 Sales $300,000 Accounts Receivable 8,925,000 Merchandise Inventory 5,620,000 Estimated Returns Inventory Office Supplies Prepaid Insurance 370,000 Cost of Merchandise Sold 5,000 Sales Salaries Expense 10,000 Advertising Expense 12,000 Depreciation Expense-Store Equipment 220,000 Miscellaneous Selling Expense 58,000 Office Salaries Expense 650,000 Rent Expense 850,000 420,000 33,000 18,000 Office Equipment Accumulated Depreciation-Office Equipment 540,000 Store Equipment 48,000 Accumulated Depreciation-Store Equipment 24,000 Accounts Payable 87,500 Insurance Expense 38,500 Depreciation Expense-Office Equipment 10,000 Office Supplies Expense 4,000 Miscellaneous Administrative Exp. 10,000 Customer Refunds Payable 4,000 Salaries Payable Note Payable (final payment due 2032) 140,000 Interest Expense 6,000 12,000 Gerri Faber, Capital 431,000 Required: 1 Dranare a multiple cten Income statement Check My Work 3 more Check My Work uses remaining. Previous All work saved Save and Exit Submit Assignment for

Answer 1

KANPUR CO.

$8.925,000 5,620,000 $3,305,000 $1,321,000 KANPUR CO. Income Statement For the Year Ended June 30, 2019 Sales Cost of merchandise sold Gross profit Expenses: Selling expenses: Sales salaries expense $850,000 Advertising expense 420,000 Depreciation expense-store equipment 33,000 Miscellaneous selling expense 18,000 Total selling expenses Administrative expenses: Office salaries expense $540,000 Rent expense 48,000 Insurance expense 24,000 Depreciation expense-office equipment 10,000 Office supplies expense 4,000 Miscellaneous administrative expense 6,000 Total administrative expenses Total operating expenses Income from operations Other expense: Interest expense Net income 632.000 1,953,000 $1,352,000 12.000 $1,340,000

KANPUR CO Statement of Owner's Equity For the Year Ended June 30, 2019 Gerri Faber, capital, July 1, 2018 Net Income for the year $1,340,000 withdrawals (300.000 Increase in owner's equity Gerri Faber, capital, June 30, 2019 $ 431,000 1.040.000 $1,471,000



KANPUR CO. Balance Sheet June 30, 2019 Current assets: 370.000 5.000 10.000 12.000 $ 939.000 $220,000 58.000 $650.000 5 162.000 87.500 $1.663 500 Accounts receivable Merchandise inventory Estimated returns Inventory Office supplies Prepaid insurance Total current assets Property, plant, and equipment: Office equipment Less accumulated depreciation Store equipment Less accumulated depreciation Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Customer refunds payable Salaries payable Note payable current portion) Total current liabilities Long term liabilities: Note payable (final payment due 2032) Total liabilities Owner's Equity Gerri Faber, capital Total liabilities and owner's equity

4) Multi Step Income Statement.