Question

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:

Cash	$125,300		Retained Earnings	$552,500
Accounts Receivable	334,200		Dividends	75,100
Inventory	381,000		Sales	4,591,100
Estimated Returns Inventory	5,000		Cost of Goods Sold	2,655,600
Office Supplies	11,800		Sales Salaries Expense	746,800
Prepaid Insurance	9,100		Advertising Expense	205,400
Office Equipment	275,800		Depreciation Expense—    Store Equipment	40,000
Accumulated Depreciation—    Office Equipment	187,500		Miscellaneous Selling Expense	17,500
Store Equipment	861,100		Office Salaries Expense	407,700
Accumulated Depreciation—    Store Equipment	275,800		Rent Expense	60,200
Accounts Payable	190,900		Depreciation Expense—    Office Equipment	30,100
Customer Refunds Payable	10,000		Insurance Expense	18,700
Salaries Payable	12,200		Office Supplies Expense	11,000
Note Payable    (final payment due 2024)	400,000		Miscellaneous Administrative Exp.	8,000
Common Stock	71,600		Interest Expense	12,200

Required:

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, 2017: Cash $125,300 Retained Earnings Accounts Receivable 334,200 Dividends Inventory 381,000 Sales $552,500 75,100 4,591,100 2,655,600 746,800 205,400 Estimated Returns Inventory 5,000 Cost of Goods Sold Office Supplies 11,800 Sales Salaries Expense Prepaid Insurance 9,100 Advertising Expense Office Equipment 275,800 Depreciation Expense- Store Equipment 40,000 Accumulated Depreciation- Office Equipment Miscellaneous Selling Expense 17,500 187,500 Store Equipment 861,100 Office Salaries Expense 407,700 Accumulated Depreciation- Store Equipment Rent Expense 60,200 275,800 Accounts Payable 190,900 Depreciation Expense- Office Equipment 30,100 Customer Refunds Payable 10,000 12,200 Insurance Expense Office Supplies Expense 18,700 11,000 Salaries Payable Note Payable (final payment due 2024) Miscellaneous Administrative Exp. 8,000 400,000 Common Stock 71,600 Interest Expense 12,200

Answer 1

Solution: Kanpur co statement of owners equity For the year ended June 30,20Y7 Common stock Retained earnings Total 552500 616600 Balance July 1,20Y6 64100 Issued common stock 7500 7500 Net income Dividends Balance June 30,20Y7 377900 377900 75100 75100 855300 926900 71600 Balan ce sheet Total liabilities stockholder equity 613100 common stock 71600 Retained earnings Total stockholder equity Total liabilities and stockholder equity 855300 926900 1540000