Single-Step Income Statement The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the year ended December 31, 2010:

Advertising expense $ 1,500 Commissions expense 2,415 Cost of goods sold 29,200 Depreciation expense—offi ce building 2,900 Income tax expense 1,540 Insurance expense—salesperson’s auto 2,250 Interest expense $ 1,400 Interest revenue 1,340 Rent revenue 6,700 Salaries and wages expense—offi ce 12,560 Sales revenue 48,300 Supplies expense—offi ce 890 Required 1. Prepare a single-step income statement for the year ended December 31, 2010.
2. What weaknesses do you see in this form for the income statement?AppendixLO1