(Learning Objective 2, 4: Reporting comparative amounts on income statement)

Refer to Ryan’s Home Repair Services account balances for 20X4 and 20X5 in P4-40A above.

Suppose Ryan decided to show all the accounts on its income statement. In addition, Ryan discovered that:

■ Supplies expense in 20X4 and 20X5 contained an item amounting to $500 in each year that is more appropriately classifi ed as advertising expense.

■ Other expenses in 20X4 and 20X5 contained an item amounting to $400 in each year that is more appropriately classifi ed as motor vehicle expense.

❙ Requirements Prepare Ryan’s income statement for 20X5 with the appropriate 20X4 comparative amounts.