Question

Pharoah Company had the following account balances: Sales revenue $ 447000 Cost of goods sold 228000 Salaries and wages expense 29500 Depreciation expense 62500 Dividend revenue 12700 Utilities expense 23600 Rent revenue 60500 Interest expense 37000 Sales returns and allow. 33600 Advertising expense 38400 What would Pharoah report as total revenues in a single-step income statement?

Answer 1

Answer:

Total Revenues        $520,200

Explanation:

A single step income statement is for the management use and it accumulates all the revenues in one column and accumulates all the expenses in another. All the expenses or deductions from the revenues, including sales returns, are dealt with in the expense section.

Revenues

Sales                        $447,000

Dividend Revenue   $12,700

Rent Revenue          $60,500

Total Revenues        $520,200

Hope that helps.