The account balances for Tesla Electrical Supply, Inc., for the year ended August 31, 2016, are presented next in random order:

Requirements
1. Prepare Tesla 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. Accumulated Depreciation, Equipment. $ 6,450 46,500 5,800 35,000 10,000 24,500 1,450 $123,700 Cash. Equipment. Accounts Payable. 13,700 2,350 Common Stock. Unearned Revenues. Sales Revenue. Long-Term Notes Payable.. General Expenses. Salaries Payable. 275,000 5,100 Accounts Receivable. Accumulated Depreciation, Supplies. Building.. Sales Returns and 950 Building. Mortgage Payable (Long-Term) 38,000 135,000 25,900 Allowances. 3,400 1,750 Dividends. 45,000 1,500 37,000 16,050 Prepaid Rent Interest Expense Sales Discounts Selling Expenses 40,450 Inventory. 750 Retained Earnings