Question

The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,400 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 881,105 Interest Income 5,500 Dividends 9,000 Rent Expense 59,500 Wages Expense 529,000 Supplies Expense 42,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,530,565 $1,530,565 Use this information to prepare the Single-Step Income Statement for the fiscal year. There are additional lines in the formatted income statement form to allow for authorized alternate presentations.

Answer 1

The required solution is as following.

EASTON COMPANY
Income Statement
For the Years Ending Dec 2018
Revenue
	Service revenue	$                        881,105
	Interest revenue	$                            5,500
Total Revenues		$                    886,605
Expenses
	Depreciation	$                        150,000
	Rent	$                          59,500
	wages Expenses	$                        529,000
	Utilities Expenses	$                            8,000
	Supplies Expenses	$                          42,000
Total Expenses		$                    788,500
	Net Income Before Taxes	$                          98,105
	Income tax expense	$                                 -
Income from Continuing Operations		$                      98,105
	{42}
Below-the-Line Items
	Income from discontinued operations	$                                 -
	Effect of accounting changes	$                                 -
	Extraordinary items	$                                 -
Net Income		$                      98,105

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