Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2019, are presented in Problem 6-5B.
Instructions
1. Prepare a single-step income statement in the format shown in Exhibit 12.
2. Prepare closing entries as of June 30, 2019.
Answer:
1.
Sales$8,925,000
Expenses:
Cost of merchandise sold $5,620,000
Selling expenses1,321,000
Administrative expenses632,000
Interest expense12,000
Total expenses7,585,000
Net income$1,340,000
2. 2019
June 30 Sales8,925,000
Cost of Merchandise Sold5,620,000
Sales Salaries Expense850,000
Advertising Expense420,000
Depreciation Expense—Store Equipment 33,000
Miscellaneous Selling Expense18,000
Office Salaries Expense540,000
Rent Expense48,000
Insurance Expense24,000
Depreciation Expense—Office Equipment 10,000
Office Supplies Expense4,000
Miscellaneous Administrative Expense 6,000
Interest Expense12,000
Gerri Faber, Capital1,340,000
30 Gerri Faber, Capital300,000
Gerri Faber, Drawing300,000
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