Summary operating data for Custom Wire & Tubing Company during the year ended Ap

ID: 2499767 • Letter: S

Question

Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 2016, are as follows: cost of merchandise sold, $5,908,300; administrative expenses, $724,350; interest expense, $24,600; rent revenue, $61,250; sales, $9,142,000; and selling expenses, $1,236,700.

Prepare a single-step income statement. Be sure to complete the statement heading. Refer to the lists of Labels, Accounts, and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Explanation / Answer

Custom Wire & Tubing Company

Single-step income statement

For the year ended April 30, 2016

Revenues:

Rent revenue

$ 61,250

Sales

$ 9,142,000

Total Revenue (A)

$ 9,203,250

Expenses:

Cost of merchandise sold

$ 5,908,300

Administrative expenses

$ 724,350

Interest expense

$ 24,600

Selling expenses

$ 1,236,700

Total Expenses (B)

$ 7,893,950

Net Income (A-B)

$ 1,309,300