Aggregating information for presentation on the Income Statement) Rupert's Home Repair Services had the following balances...

 

Transcribed Image Text:

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