The account balances for Spark?s Electrical Supply, Inc., for the year ended August 31, 2018, are presented next in random order:

Requirements

1. Prepare Spark?s Electrical Supply, Inc.?s single-step income statement.

2. Would you recommend the use of the single-step income statement format by a merchandiser? Why?

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Cost of Goods Sold . $123,700 Accumulated Depreciation, Equipment . Unearned Revenues. $ 6,450 48,800 5,800 Cash.. Equipment. Accounts Payable.. Common Stock. Long-Term Notes Payable.. General Expenses. Salaries Payable. Supplies. Building. Estimated Refund 13,700 2,350 271,600 5,100 35,000 10,000 24,500 Sales Revenue.... Accounts Receivable . Accumulated Depreciation, Building. Mortgage Payable (Long-Term) Dividends.. Estimated Inventory Returns.. Selling Expenses . Inventory.. 1,450 950 38,000 135,000 25,900 45,000 1,500 37,000 16,050 Liability Prepaid Rent. Interest Expense Retained Earnings. 2,300 1,750 750 40,450