Exercise 5-9 (Part Level Submission) below for the year ended December 31, 2018:
ID: 2540090 • Letter: E
Question
Exercise 5-9 (Part Level Submission) below for the year ended December 31, 2018: Accounts receivable $277,000 Advertising expense Common shares Cost of goods sold 57,000 263,000 1,061,000 125,000 Depreciation expense Dividends declared Equipment Freight out Income tax expense 162,000 1,350,000 27,000 72,000 21,000 63,000 31,000 89,000 33,000 22,000 70,000 762,000 2,598,000 19,000 42,000 18,000 nsurance expense Interest expense Interest revenue Inventory Prepaid expenses Rent revenue Retained earnings Salaries expense Sales Sales discounts Sales returns and allowances Unearned revenue (a) Prepare a single-step income statement.Explanation / Answer
INCOME STATEMENT AMOUNT $ Sales revenue 2598000 Less: Sales Discount 19000 Sales returns and allowances 42000 61000 Net sales revenue 2537000 Interest Revenue 31000 Rent revenue 22000 Total Revenue 2590000 Less: Expenses: Cost of Goods sold 1061000 Advertising expense 57000 Depreciation 125000 Frieght out 27000 Insurance expense 21000 Interest expens 63000 Salaries 762000 Total expense 2116000 Net income before income tax 474000 less: Income tax 72000 Net income after tax 402000