Question

Selected data from the ledger of Beck Co., after adjustments, on September 30, the end of the fiscal year, are listed as follows:
Accounts Receivable $39,120
Prepaid Insurance $4,680
Accumulated Depreciation 60,540
Note Payable 77,750
Administrative Expenses 90,000
Retained Earnings 25,000
Common Stock 65,000
Salaries Payable 3,060
Cost of Goods Sold 550,000
Sales 950,000
Dividends 65,000
Selling Expenses 102,000
Interest Revenue 10,000
Supplies 3,125
Office Equipment 82,700

Required:
Prepare a single-step income statement.

Answer 1

Answer:

Beck Co.

Single-step Income Statement

For the year ended September 30

Sales                                $950,000

Interest Revenue                 10,000

Total revenue                 $960,000

Total cost and expenses:

Cost of Goods Sold         550,000

Administrative Expenses  90,000

Selling Expenses             102,000

Total costs                    $742,000

Net income                   $218,000

Explanation:

a) Data and Calculations:

Accounts Receivable $39,120

Prepaid Insurance $4,680

Supplies 3,125

Office Equipment 82,700

Accumulated Depreciation 60,540

Note Payable 77,750

Salaries Payable 3,060

Common Stock 65,000

Retained Earnings 25,000

Dividends 65,000