Question

The following selected accounts from Highview Electronics Corporation’s general ledger are presented below for the year ended December 31, 2018:

Accounts receivable		$283,000
Accumulated depreciation—equipment		726,000
Advertising expense		60,000
Common shares		235,000
Cost of goods sold		1,064,000
Depreciation expense		126,000
Dividends declared		137,000
Equipment		1,499,000
Freight out		26,000
Income tax expense		67,000
Insurance expense		21,000
Interest expense		61,000
Interest revenue		28,000
Inventory		89,000
Prepaid expenses		30,000
Rent revenue		24,000
Retained earnings		506,000
Salaries expense		665,000
Sales		2,686,000
Sales discounts		20,000
Sales returns and allowances		37,000
Unearned revenue		17,000

Prepare a single-step income statement.

Answer 1

Single Step Income Statement:-

In Single Step Income Statement lists all Revenue or Gains in one column and all Expenses or Losses including Cost of Goods Sold in other one . This statement doesn't categorise the Expenses in Cost of Goods Sold, Operating and Non Operating.

HIGHVIEW ELECTRONICS CORPORATION

Income Statement (Single Step)

For the Year Ended December 31,2018

Accounts	Amount	Amount
Total Revenues:-
Sales	$2,686,000
Less:- Sales Discounts	(20,000)
Less:- Sales Returns and Allowances	(37,000)
Net Sales	$2,629,000
Interest Revenue	28,000
Rent Revenue	24,000
Total Revenues		$2,681,000
Less:- Expenses:-
Cost of Goods Sold	$1,064,000
Advertising Expense	60,000
Depreciation Expense	126,000
Freight Out	26,000
Insurance Expense	21,000
Interest Expense	61,000
Salaries Expense	665,000
Income tax Expense	67,000
Total Expenses		$(2,090,000)
Net Income		$591,000