Question

Ortiz Co. had the following account balances:

Sales $ 220,000
Cost of goods sold 110,000
Salary and Wages expense 15,000
Depreciation expense 30,000
Dividend revenue 6,000
Utilities expense 12,000
Rental revenue 30,000
Interest expense 18,000
Sales returns and Allowances 16,500
Advertising expense 19,000
What would Ortiz report as total expenses in a single-step income statement?
a. $210,500
b. $ 221,000
c. $204,500
d. $94,500

Answer 1

In a single-step income statement, total expenses for Ortiz Co. would be $221,500.

Step-by-step explanation:

In a single-step income statement, total expenses are reported by summing up all the different expense categories. From the given information, the total expenses for Ortiz Co. would be:

Sales Returns and Allowances: $16,500

Cost of Goods Sold: $110,000

Salary and Wages Expense: $15,000

Depreciation Expense: $30,000

Utilities Expense: $12,000

Interest Expense: $18,000

Advertising Expense: $19,000

So, the total expenses would be $221,500, which is option (a).