Selected Data from the Ledger of Wiles Co Prepare a Single-Step Income Statement for the Year Ended June

question 119

Essay

Selected data from the ledger of Wiles Co. after adjustment at June 30, the end of the fiscal year, are listed as follows:
$\begin{array}{llll}\$ 4,680 & \text { Prepaid Insurance } & \$ 39,120 & \text { Accounts Receivable } \\77,750 & \text { Notes Payable } & 60,540 & \text { AccumulatedDepreciation } \\75,000 & \text { Retained Earnings } & 90,500 & \text { Administrative Expenses } \\3,060 & \text { Salaries Payable } & 60,000 & \text { Capital Stock } \\920,000 & \text { Sales (net) } & 655,000 & \text { Cost of Merchandise Sold } \\110,000 & \text { Selling Expenses } & 40,000 & \text { Dividends } \\3,125 & \text { Supplies } & 10,500 & \text { Interest Revenue } \\& & 82,700 & \text { Office Equipment }\end{array}$
Prepare a single-step income statement for the year ended June 30, 2013.

---

Definitions:

Working Capital

The gap between a firm's current assets and current liabilities, signifying its short-term financial stability and operational effectiveness.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Capital Lease

A lease agreement that has the characteristics of a purchase by the lessee, including transfer of ownership by the end of the lease term.

Leased Asset

A leased asset is a possession that is rented under a lease agreement, granting the lessee the right to use the asset in exchange for periodic lease payments.