Single-step Income Statement

Alright, so now let's form an income statement and let's start with a really simple one. The single step income statement. So a single step income statement, like I said, it's it's pretty simple. All we do is we're gonna show all our revenues first, then all our expenses and then finally calculate net income. Okay, so revenues minus expenses equals net income. This is a pretty standard equation that we're used to. So let's go ahead and just dive right in and let's create a single step income statement. Okay, So they gave us all this information for the month of november, right? We've got sales revenue accounts, payable wage expense, a bunch of stuff here, right? So we want to pick and choose our revenues first, then show all our expenses and then finally calculate net income. Alright, so let's start with all our revenues notice we've got sales revenue counts, payable wage, expense, interest, expense, dividends, service revenue cash collected from customers on account. So notice those are our two revenue accounts, right? Cash collected from customers on account. This is collecting accounts receivable, That has nothing to do with revenue. Right? So let's put in our revenue, sales revenue and service revenue, sales revenue of 4300. Service revenue of 18,000. So we would write it in sales revenue And we would put over here 300,000 and then service revenue for 18,000 at this point we could show a total Total revenues. And we would just add these up. We get 318,000, right? 318,000. Let me fix this. three, a little bit. Cool. And then we just gotta put all our expenses in here. So we've got a bunch of things, but let's just go one by one. When we do, when we do a single step income statement is just get all the expenses in there. So I'm gonna circle them in blue. We have our wage expense, our interest expense about dividends, dividends are not an expense, right? Dividends are not an expense. So wage expense, interest, expense, cost of goods sold is an expense, income tax expense and other general and administrative expenses. Notice all of those say expense except for cost of goods sold, right? Cost of goods sold is a special case, but it is an expense. Alright, so let's go ahead and go one by one. Let's start wage expense 35,000 And I'm gonna put the XP to save time wage expense 35,000. What's the next one? Interest expense for 6000 And I'll put in expense. Just saving a little time. 6000. All right. What's the next one? Cost of goods sold for 180,000 Cogs was 180,000. Alright, next one income tax expense for 12,000. I'm just gonna put tax expense. What was it 12,000 I think. Let me check, yep. And then our last one other general and administrative expenses. 48,000. So other just other expenses. 48,000. Okay, just to save time. Obviously, if we're really making a full one, we would write all these things out. Right. Other general and administrative expenses, Blah Blah Blah. So let's go ahead and get our total expenses here. So we just gotta add all these up. Let's see. 35,000 plus 6000 plus 100 and 80,000 plus 12,000 plus. 48,000. Cool. That comes out to 281,000. And then the last thing is our net income. So net income is just gonna be those total revenues minus total expenses, 318,000 minus 281,000 Is 37,000. So 37,000, that is our bottom line. And that is our net income. Cool. So there you go. That is our single step-income statement. Pretty straightforward. Just show your revenues, then show all your expenses and calculate net income. Cool. Let's move on to the next video.