EX 6-25 Single-step income statement

Summary operating data for Cummerbund Company during the current year ended June 30, 2014, are as follows: cost of merchandise sold, $2,400,000; administrative expenses, $420,000; interest expense, $30,000; rent revenue, $125,000; net sales, $3,750,000; and selling expenses, $550,000. Prepare a single-step income statement.


Answer:

CUMMERBUND COMPANY
Income Statement
For the Year Ended June 30, 2014
Revenues:
Net sales $3,750,000
Rent revenue 125,000
Total revenues $3,875,000
Expenses:
Cost of merchandise sold $2,400,000
Selling expenses 550,000
Administrative expenses 420,000
Interest expense 30,000
Total expenses 3,400,000
Net income $ 475,000