Ex 1: Prepare an income Single-Step Format M.B.

statement from the data

below. Income Statement
For the year ended Dec. 31, 2019
Administrative expense: Revenues:
Officers' salaries $ 4 900 Sales $ 96 500
Depreciation 3 960 Rental revenue 17 230
Cost of goods sold 63 570 Total revenues 113 730
Rental revenue 17 230 Expenses:
Selling expense: Cost of goods sold 63 570
Transportation-out 2 690 Selling expense 17 150
Sales commissions 7 980 Administrative expense 8 860
Depreciation 6 480 Interest expense 1 860
Sales 96 500 Income tax expense 7 580
Income tax expense 7 580 Total expenses 99 020
Interest expense 1 860 Net income $ 14 710

Chapter 4-1
 M.B.
Multiple-Step Income Statement

Sales
– Cost of goods sold
= Gross profit
Operating expenses:
– Selling expenses
– General and Four
administrative expenses important
= Income from operations subtotals
+/– Other revenues and expenses
= Income before taxes
– Income tax expense
= Net income
Chapter 4-2