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 revenues in a single-step income statement?
a. $239,500
b. $ 35,000
c. $236,000
d. $220,000

Answer 1

Ortiz Co. would report $256,000 as total revenues in a single-step income statement.

Step-by-step explanation:

To calculate the total revenues in a single-step income statement, we need to add up all the revenue accounts. In this case, the revenue accounts are Sales, Dividend Revenue, and Rental Revenue.

Add the amounts: $220,000 + $6,000 + $30,000 = $256,000

Therefore, Ortiz Co. would report $256,000 as total revenues in a single-step income statement.