Question

Star co.had sale revenue £540000 in 2015

Answer 1

Answer:

Net income $55,000

Earnings per common share $0.55

Explanation:

Preparation of a single-step income statement for Starr for 2015.

Starr Co. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015

REVENUES

Sales revenue $540,000

Total revenues $540,000

EXPENSES:

Cost of goods sold $330,000

Salaries and wages expense $120,000

Income tax expense $25,000

Other operating expenses $10,000

Total expenses $485,000

($330,000+$120,000+$25,000+$10,000)

Net income $55,000

($540,000-$485,000)

Earnings per common share $0.55

($55,000 ÷ 100,000 shares)

Therefore single-step income statement for Starr for 2015 will have a Net income of $55,000 and Earnings per common share of $0.55.