Single-Step Income Statement The following income statement items, arranged in a

Question

Single-Step Income Statement

The following income statement items, arranged in alphabetical order, are taken from the records of Nahm Corp. for the current year:

Required:

1. Prepare a single-step income statement for the current year.

2. Which of following is not true with regard to single-step income statement??

Advertising expense $9,000 Rent expense—office $ 26,400 Cost of goods sold 150,000 Rent expense—salesperson's car 18,000 Depreciation expense—computer 4,500 Sales revenue 330,000 Dividend revenue 2,700 Supplies expense—office 1,300 Income tax expense 30,700 Utilities expense 6,750 Interest expense 1,900 Wages expense—office 45,600 Nahm Corp. Income Statement For the Current Year Revenues: Total revenues Expenses: Total expenses

Explanation / Answer

Answer = 1) Nahm Corp. Income Statement For the Current Year Revenues: Amount Amount Sales Revenue $            3,30,000 Dividend Revenue $                  2,700 Total Revenues $        3,32,700 Expenses: Cost of Goods Sold $            1,50,000 Advertising Expenses $                  9,000 Interest Expenses $                  1,900 Rent Expenses - Office $               26,400 Rent Expenses - Salesperson's Car $               18,000 Supplies Expenses - Office $                  1,300 Utilities Expenses $                  6,750 Wages expenses - Office $               45,600 Dpreciation Expenses - computer $                  4,500 Income Tax Expenses 30700 Total Expenses $        2,94,150 Net Income $            38,550 Answer = 2) Answer = Option 4 = The income statement is subdivided into specific section and provides the reader with important subtotals.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---