Answer:
i. Single-Step Income Statement
GREEN MARKET
Income Statement
For the Year Ended December 31
Revenues & Gains Amounts$
Sales revenue 5,600
Gain on sale of land <u>200</u>
Total revenue & gains 5,800
Expenses
Cost of goods sold (2,950)
Advertising expense (600)
Interest expense (120)
Salaries expense (960)
Rent expense <u>(510) </u>
Total cost and expenses <u>(5,140)</u>
Net Income <u>$660</u>
ii. Multistep Income Statement
GREEN MARKET
Income Statement
For the Year Ended December 31
Particulars Amount$
Sales revenue 5,600
Cost of goods sold <u>(2,950)</u>
Gross margin 2,650
<u>Operating expenses</u>
Salaries expense (960)
Advertising expense (600)
Rent expense <u>(510)</u>
Total operating expenses <u>(2,070)
</u>
Operating income 580
<u>Non-operating items</u>
Gain on sale of land 200
Interest Expense (120) <u>80</u>
Net Income <u>$660</u>