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.
