Taret’s adjusted account balances from its general ledger on April 30, its fiscal year-end, are shown here in random order.

(a) 

Prepare a multiple-step income statement that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

(b)
Prepare a single-step income statement that begins with net sales and includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

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Adjusted Account Balances Merchandise inventory...... Other (noninventory) assets.. Total liabilities.... Common stock..... Retained earnings... Dividends Sales..... Sales discounts... Sales returns and allowances Cost of goods sold ...... Sales salaries expense.. Rent expense-Selling space. Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Totals...... Debit Credit $ 800 2,600 300 $ 500 400 1,700 9,500 260 240 6,500 450 400 30 20 420 72 8 $12,100 $12,100