The account balances for Grease Monkey Auto Supply, Inc., for the year ended December 31, 2018, are presented next in random order:

Requirements

1. Prepare Grease Monkey Auto 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 . $128,600 Accumulated Depreciation, Equipment . Unearned Revenues . $ 4,900 39,400 4,200 15,000 23,400 21,800 Cash.. Equipment. Accounts Payable. . Common Stock. . Long-Term Notes Payable.. General Expenses.. Salaries Payable. Supplies. Building.. Estimated Refund 7,600 2,500 262,800 5,100 Sales Revenue... Accounts Receivable. Accumulated Depreciation, Building. Mortgage Payable (Long-Term) . Dividends. Estimated Inventory Returns.. Selling Expenses. Inventory.. 3,100 1,200 155,000 27,800 45,000 65,000 1,400 23,400 13,700 2,700 2,900 69,200 900 Liability Prepaid Rent. Retained Earnings. Interest Expense .