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The following selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 2014:

 Cash $92,000 Sales $9,175,000 Accounts Receivable 450,000 Sales Returns and Allowances 160,000 Merchandise Inventory 375,000 Sales Discounts 90,000 Office Supplies 10,000 Cost of Merchandise Sold 5,620,000 Prepaid Insurance 12,000 Sales Salaries Expense 850,000 Office Equipment 220,000 Advertising Expense 420,000 Accumulated Depreciation-  Depreciation Expense-  Office Equipment 58,000 Store Equipment 33,000 Store Equipment 650,000 Miscellaneous Selling Expense 18,000 Accumulated Depreciation-  Office Salaries Expense 540,000 Store Equipment 87,500 Rent Expense 48,000 Accounts Payable 48,500 Insurance Expense 24,000 Salaries Payable 4,000 Depreciation Expense-  Note Payable  Office Equipment 10,000 (final payment due 2032) 140,000 Office Supplies Expense 4,000 Capital Stock 50,000 Miscellaneous Administrative Exp. 6,000 Retained Eamings 381,000 Interest Expense 12,000 Dividends 300,000\begin{array}{lrlr} \text { Cash } & \$ 92,000 & \text { Sales } & \$ 9,175,000 \\ \text { Accounts Receivable } & 450,000 & \text { Sales Returns and Allowances } & 160,000 \\ \text { Merchandise Inventory } & 375,000 & \text { Sales Discounts } & 90,000 \\ \text { Office Supplies } & 10,000 & \text { Cost of Merchandise Sold } & 5,620,000 \\ \text { Prepaid Insurance } & 12,000 & \text { Sales Salaries Expense } & 850,000 \\ \text { Office Equipment } & 220,000 & \text { Advertising Expense } & 420,000 \\ \text { Accumulated Depreciation- } & & \text { Depreciation Expense- } & \\ \quad\text { Office Equipment } & 58,000 & \quad \text { Store Equipment } & 33,000 \\ \text { Store Equipment } & 650,000 & \text { Miscellaneous Selling Expense } & 18,000 \\ \text { Accumulated Depreciation- } & & \text { Office Salaries Expense } & 540,000 \\ \quad\text { Store Equipment } & 87,500 & \text { Rent Expense } & 48,000 \\ \text { Accounts Payable } & 48,500 & \text { Insurance Expense } & 24,000 \\ \text { Salaries Payable } & 4,000 & \text { Depreciation Expense- } & \\ \text { Note Payable } & & \quad\text { Office Equipment } & 10,000 \\ \quad\text { (final payment due 2032) } & 140,000 & \text { Office Supplies Expense } & 4,000 \\ \text { Capital Stock } & 50,000 & \text { Miscellaneous Administrative Exp. } & 6,000 \\ \text { Retained Eamings } & 381,000 & \text { Interest Expense } & 12,000 \\ \text { Dividends } & 300,000 & & \end{array}

Instructions

  1. Prepare a single-step income statement in the format shown in Exhibit 9.
  2. Prepare a retained earnings statement.
  3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is $7,000.
  4. Prepare closing entries as of June 30, 2014.
Question

The following revenue and expense account balances were taken from the ledger of Veggie Health Services Co. after the accounts had been adjusted on February 28, 2014, the end of the current fiscal year:

 Depreciation Expense $9,000 Service Revenue $270,900 Insurance Expense 4,000 Supplies Expense 3,000 Miscellaneous Expense 6,000 Utilities Expense 17,600 Rent Expense 42,000 Wages Expense 213,100\begin{array}{lrlr} \text { Depreciation Expense } & \$ 9,000 & \text { Service Revenue } & \$ 270,900 \\ \text { Insurance Expense } & 4,000 & \text { Supplies Expense } & 3,000 \\ \text { Miscellaneous Expense } & 6,000 & \text { Utilities Expense } & 17,600 \\ \text { Rent Expense } & 42,000 & \text { Wages Expense } & 213,100 \end{array}

Prepare an income statement.

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