Question

Income Statement, Retained Earnings Statement, and Balance Sheet The following information relates to Ashton Appliances for 2019.
Accounts payable $16,800
Income tax expense $16,650
Accounts receivable 69,900
Income taxes payable 12,000
Accumulated depreciation (building) 104,800
Insurance expense 36,610
Accumulated depreciation (furniture) 27,600
Interest expense 15,500
Bonds payable (due in 7 years) 192,000
Inventory 59,850
Building 300,000
Other assets 92,800
Cash 41,450
Rent expense (store equipment) 80,800
Common shares 243,610
Retained earnings, 12/31/2018 54,000
Cost of goods sold 511,350
Salaries expense 228,710
Depreciation expense (building) 11,050
Salaries payable 7,190
Depreciation expense (furniture) 12,000
Sales revenue 948,670
Furniture 130,000

Required:
Prepare a single-step income statement for 2019.

Answer 1

Answer:

Ashton Appliances

Single-step income statement for the year ended 2019

Sales revenue                                                             948,670

Less Cost of goods sold                                            (511,350)

Gross Profit                                                                  437,320

Less Expenses

Income tax expense                                16,650

Insurance expense                                  36,610

Interest expense                                      15,500

Rent expense                                          80,800

Salaries expense                                    228,710

Depreciation expense (building)             11,050

Depreciation expense (furniture)           12,000      (401,320)

Net Income / Loss                                                     $36,000

Explanation:

A single-step income statement does not separate expenses from Primary Activities and Secondary Activities. It also does not calculate Operating Income. Instead it calculates Net Income/loss.

Remember only Income and expenses are accounted  in an income statement.