Single-Step Income Statement
The following income statement items, arranged in alphabetical order, are taken from the records of Corbin Enterprises for the current year:
|
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
|
350,000
|
|
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
|
|
Required
|
|
|
|
1. Prepare a single-step income statement for the current year.
2. What weaknesses do you see in this form for the income statement?