Question

Sandhill Co. had the following account balances: Sales revenue $ 431000 Cost of goods sold 226000 Salaries and wages expense 33500 Depreciation expense 64000 Dividend revenue 11400 Utilities expense 23100 Rent revenue 58800 Interest expense 36100 Sales returns and allow. 33200 Advertising expense 38100 What would Sandhill report as total revenues in a single-step income statement?

Answer 1

$468,000

Step-by-step explanation:

The computation of the total revenues in case for single-step income statement is shown below:

= Sales revenue - sales return and allowances + dividend revenue + rent revenue

= $431,000 - $33,200 + $11,400 + $58,800

= $468,000

We simply added all the revenues which increased the sales for the company after considering the sales return and allowances