P4-48B. (Learning Objectives 2, 4: Aggregating information for presentation on the Income Statement) Rupert’s Home Repair Services had the following balances at the end of 20X4 and 20X5.

Requirements 1. Assuming that Rupert would like to disclose no more than what is required by accounting standards, with the maximum level of aggregation possible, prepare an Income Statement to such effect.
2. Why would it not be possible for Rupert to simply show a three-line Income Statement, one that simply lists total revenue, total expenses, and net profit?
3. How should Rupert decide which line items are important enough to be shown separately on the Income Statement and which ones to aggregate?

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A1 Rupert's Home Repair Services Partial Account Listing and Balances As of December 31, 20X5 and 20X4 20X5 $ 39,800 20X4 $ 42,900 27,700 1 2 Sales revenue 3 Service revenue 11,300 4 Interest income 2,300 3,900 5 Cost of goods sold 6 Wages and salaries 7 Depreciation 13,200 17,400 10,300 12,200 2,900 2,900 8 Supplies expense 7,800 8,400 9 Interest expense 400 600 10 Motor vehicle expense 3,500 4,100 11 Fuel expense 1,600 2,400 12 Utilities expense 2,100 1,500 13 Advertising expense 2,700 3,200 14 Tax expense 1,400 2,000 15 D E