Brief Exercise 1-26 Income Statement
An analysis of the transactions of Rutherford Company for the year ended December 31, yields the following information: sales revenue, $65,000; insurance expense, $4,300; interest income, $3,900; cost of goods sold, $28,800; and loss on disposal of property, plant, and equipment, $1,200.
Required:
Prepare a single income statement.
Concept Introduction:
Income Statement:
Income Statement is the part of the financial statement which is prepared to calculate the net income earned by the organization. In the income statement, all expenses are subtracted from the revenues to calculate the net income. It is prepared for a particular period.
There are two ways to present and income statement: Single-step and Multi-step. In the, multi-step income statement the net income calculated after showing multiple steps. In this statement operating and items are separate from non operating items.
To Prepare:
A single step income statement for Rutherford Company.
A single step income statement for Rutherford Company is prepared as follows:
Rutherford Company | ||
Single Step Income Statement | ||
For the year ended Dec. 31 | ||
Revenues: | ||
Sales Revenue | $ 65,000 | |
Interest Income | $ 3,900 | |
Total Revenues (A) |
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