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tommyaberman
tommyaberman
18.03.2020 • 
Mathematics

Single-Step Income Statement
Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2019, are shown below.

Cash
$92,000

Gerri Faber, Drawing
$300,000
Accounts Receivable
450,000

Sales
8,925,000
Merchandise Inventory
370,000

Cost of Merchandise Sold
5,620,000
Estimated Returns Inventory
5,000

Sales Salaries Expense
850,000
Office Supplies
10,000

Advertising Expense
420,000
Prepaid Insurance
12,000

Depreciation Expense—Store Equipment
33,000
Office Equipment
220,000

Miscellaneous Selling Expense
18,000
Accumulated Depreciation—Office Equipment
58,000

Office Salaries Expense
540,000
Store Equipment
650,000

Rent Expense
48,000
Accumulated Depreciation—Store Equipment
87,500

Insurance Expense
24,000
Accounts Payable
38,500

Depreciation Expense—Office Equipment
10,000
Customer Refunds Payable
10,000

Office Supplies Expense
4,000
Salaries Payable
4,000

Miscellaneous Administrative Exp.
6,000
Note Payable (final payment due 2032)
140,000

Interest Expense
12,000
Gerri Faber, Capital
431,000

Required:
1. Prepare a single-step income statement in the format shown in Exhibit 12 .
Single-Step Income Statement
KANPUR CO.

Income Statement

For the Year Ended June 30, 2019

1
Sales

2
Expenses:

3
Salaries payable

4
Selling expenses

5
Administrative expenses

6
Interest expense

7
Total expenses

8
Gross profit

2. Prepare closing entries as of June 30, 2019 in the order as presented in the chapter. For a compound transaction, if an amount box does not require an entry, leave it blank.
Closing Entries

Date
Account
Debit
Credit
1
June 30, 2019

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