Problem 6-5A Current Balances Kanpur Co. Fiscal Year Assignment
Problem 6-5A Current Balances Kanpur Co. Fiscal Year Assignment
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
Accounts Receivable – $450,000
Merchandise Inventory – $370,000
Estimated Returns Inventory – $5,000
Office Supplies – $10,000
Prepaid Insurance – $12,000
Office Equipment – $220,000
Accumulated Depreciation
—Office Equipment – $58,000
—Store Equipment – $650,000
Accumulated Depreciation
–Store Equipment – $87,500
Accounts Payable – $38,500
Customer Refunds Payable $10,000
Salaries Payable – $4,000
Note Payable
(final payment due 2032) – $140,000
Gerri Faber, Capital – $431,000
Gerri Faber, Drawing – $300,000
Sales – $8,925,000
Cost of Merchandise Sold – $5,620,000
Sales Salaries Expense – $850,000
Advertising Expense – $420,000
Depreciation Expense
—Store Equipment – $33,000
Miscellaneous Selling Expense $18,000
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 Exp. – $6,000
Interest Expense -$12,000
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner’s equity.
3. Prepare a balance sheet, assuming that the current portion of the note payable is $7,000.
4. Briefly explain how multiple-step and single-step income statements differ.
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