The following selected accounts and their current balances appear in the ledger
ID: 2586982 • Letter: T
Question
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2014:
Cash 92000
Accounts Receivable 450000
Inventory 370000
Office Supplies 10000
Prepaid Insurance 12000
Office Equipment 220000
Accumulated Depreciation—
Office Equipment 58000
Store Equipment 650000
Accumulated Depreciation—
Store Equipment 87500
Accounts Payable 38500
Salaries Payable 4000
Costumer refund Payable 10000
Note Payable
(final payment due 2032) 140000
Gerri faber , Capital 431000
Gerri Faber drawing 300000
Sales
Cost of Goods Sold
Sales Salaries Expense
Advertising Expense
Depreciation Expense—
Store Equipment
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense—
Office Equipment
Office Supplies Expense
Miscellaneous Administrative Exp.
Interest Expense
$8,925,000
5,620,000
850,000
420,000
33,000
18,000
540,000
48,000
24,000
10,000
4,000
6,000
12,000
Instructions
1. Prepare a multiple-step statement of comprehensive income.
2. Prepare a retained earnings statement.
3. Prepare a report form of statement of financial position, assuming that the current portion of the note payable is $7,000.
4. Prepare a Balance sheet
Cash 92000
Accounts Receivable 450000
Inventory 370000
Office Supplies 10000
Prepaid Insurance 12000
Office Equipment 220000
Accumulated Depreciation—
Office Equipment 58000
Store Equipment 650000
Accumulated Depreciation—
Store Equipment 87500
Accounts Payable 38500
Salaries Payable 4000
Costumer refund Payable 10000
Note Payable
(final payment due 2032) 140000
Gerri faber , Capital 431000
Gerri Faber drawing 300000
Sales
Cost of Goods Sold
Sales Salaries Expense
Advertising Expense
Depreciation Expense—
Store Equipment
Miscellaneous Selling Expense
Office Salaries Expense
Rent Expense
Insurance Expense
Depreciation Expense—
Office Equipment
Office Supplies Expense
Miscellaneous Administrative Exp.
Interest Expense
$8,925,000
5,620,000
850,000
420,000
33,000
18,000
540,000
48,000
24,000
10,000
4,000
6,000
12,000
Explanation / Answer
1.
2.
3.
4.
Note: There is a difference of $5,000 in the total assets and liabilities in the statement of financial position and balance sheet. Please re-check the amounts provided in the question.
KANPUR COMPANY Income Statement For Year Ended June 30, 2014 Sales 8925000 Cost of goods sold 5620000 Gross profit 3305000 Operating Expenses: Selling expenses: Sales salaries expense 850000 Advertising expense 420000 Depreciation expense-store equipment 33000 Miscellaneous selling expense 18000 Total selling expenses 1321000 General and administrative expenses: Office salaries expense 540000 Rent expense 48000 Insurance expense 24000 Depreciation expense-office equipment 10000 Office supplies expense 4000 Miscellaneous administrative expense 6000 Total general and administrative expenses 632000 Total operating expenses 1953000 Net operating income 1352000 Other revenues and expenses: Interest expense -12000 Net income 1340000Related Questions
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