Question

The following information for Rogers Enterprises is available at December 31, 2019, and includes all of Rogers' financial statement amounts except retained earnings:

Accounts receivable $72,920
Cash 13,240
Common stock (10,000 shares) 76,100
Income taxes expense 12,600
Income taxes payable 4,150
Interest expense 15,500
Notes payable (due in 10 years) 25,000
Prepaid rent (building) 31,500
Property, plant, and equipment 90,000
Rent expense 135,000
Retained earnings ?
Salaries expense 235,200
Salaries payable 15,420
Service revenue 463,000
Supplies 42,200
Supplies expense 32,800
Required:

Prepare a single-step income statement for the year ending December 31, 2019, for Rogers.

Answer 1

Rogers Enterprises

Income Statement

For the year ended December 31, 2019

Revenue and gains

Service revenue $463,000

Expenses and loses:

Income taxes expense 12,600

Interest expense 15,500

Rent expense 135,000

Salaries expense 235,200

Supplies expense 32,800

Total expenses 431,100

NET INCOME $31,900

Step-by-step explanation:

In preparation of single step Income statement, we must present all nominal accounts started from revenue and gains and deduct all expenses and losses to arrive the net income. It is important that we never forget the heading which consists of Name of the company, What schedule to prepare and what period it is applicable for this is to guide properly the user of the report.