Q24E

Question

The adjusted trial balance of Quality Office Systems at March 31, 2018, follows:


     

Step-by-Step Solution

Verified
Answer

The net income of the Quality Office is $83,750.

1Step 1: Meaning of Single-Step Income Statement

A single-step income statement refers to a simplified presentation of reporting revenues and expenses of a business concern. A single-step income statement computes the net income by reporting all operating and non-operating events together.

2Step 2: Preparation of single-step income statement

QUALITY OFFICE SYSTEMS

Single-step Income Statement

For the year ended March 31, 2018

Particulars

Amounts ($)

Sales revenue

235,700

Less: Cost of goods sold

(107,550)

Gross profit

128,150

Less: Expenses

 

Selling expense

(27,400)

Administrative expense

(14,200)

Interest expense

(2,800)

Net income

$83,750