Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 2019, are as follows: cost of merchandise sold, $6,100,000; administrative expenses, $740,000; interest expense, $25,000; rent revenue, $60,000; sales, $9,332,500; and selling expenses, $1,250,000. Prepare a single-step income statement. Refer to the lists of Labels, Accounts, and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Question

Business

Maia Moss

22 February, 15:03

Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 2019, are as follows: cost of merchandise sold, $6,100,000; administrative expenses, $740,000; interest expense, $25,000; rent revenue, $60,000; sales, $9,332,500; and selling expenses, $1,250,000. Prepare a single-step income statement. Refer to the lists of Labels, Accounts, and Amount Descriptions provided for the exact wording of the answer choices for text entries.

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Caroline Grant · Answer 1

Answer and Explanation:

The preparation of the single step income statement is presented below:

Custom Wire & Tubing Company

Income Statement

Particulars Amount ($)

Sales 9,332,500

less: cost of goods sold (6,100,000)

Gross profit 3,232,500

Add: rent revenues 60,000

less: expenses:

Administrative expenses (740,000)

Selling expenses (1,250,000)

Interest expenses (25,000)

Net Income 1,277,500

We simply added the revenues and deducted all expenses so that the net income could arrive