Problem 2-6 The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the year

The following income statement items, arranged in alphabetical order, are taken from the records

of Shaw Corporation for the year ended December 31, 2012:

Advertising expense      $ 1,500                        Interest expense            $ 1,400

Commissions expense  2,415                           Interest revenue                            1,340

Cost of goods sold       29,200                          Rent revenue                    6,700

Depreciation expense—officebuilding 2,900       Salaries and wages  expense—office 12,560

Income tax expense 1,540                                 Sales revenue                  48,300

Insurance expense—salesperson’s auto 2,250    Supplies expense—office      890

Required:

1.     Prepare a single-step income statement for the year ended December 31, 2012.

2.     What weaknesses do you see in this form of income statement?