Question

The following Information was taken from the accounts of Green Market, a delicatessen, at December 31, 2018. The accounts are listed In alphabetical order, and each has a normal balance. Accounts payable hccounts receivable Advertising expense Common stock Cost of goods sold Interest expense Merchandise inventory Prepaid rent Retained earnings, 1/1/2018 sales revenue Salaries expense Rent expense Gain on sale of land $ 605 405 200 415 205 500 65 400 45 640 1.050 180 100 90 * Required Prepare an income statement for the year using the single-step and multistep approach (Enter any losses with a minus sign.) Complete this question by entering your answers in the tabs below. ences Single step Multistep Prepare an income statement for the year using the single-step approach. (Enter any losses with a minus sign.) GREEN MARKET Single-Step Income Statement For the Year Ended December 31, 2018 Sponses Total cost and

Answer 1

GREEN MARKET
SINGLE STEP INCOME STATEMENT
for the year ended 31 December 2018

Particulars	Amount
Revenue:
Sales revenue	$1050
Gain on sale of land	$90
Total revenue(A)	$1140
Expenses:
Advertising expenses	$200
Cost of goods sold	$600
Interest expense	$65
Salaries expense	$180
Rent expense	$100
Total expense(B)	$1145
Net Income(Loss)(A-B)	$(5)

Note: Single step income statement is the format of statement of income in which income or loss is calculated in only one subtraction. In single step income statement all revenues are accumulated under one head and all expense are accumulated under another head.