The following account titles and balances were taken from the accounting records of Hogan Sales Co. at December 31, Year 2. The company uses the periodic inventory method.

Account Title Balance
Advertising expense ............................................. $ 20,800
Interest expense ...................................................... 10,000
Merchandise inventory, January 1 ......................... 36,000
Merchandise inventory, December 31 .................. 40,200
Miscellaneous expense ............................................. 1,600
Purchases ............................................................... 300,000
Purchase returns and allowances ........................... 5,400
Rent expense ........................................................... 36,000
Salaries expense ................................................... 106,000
Sales ........................................................................ 640,000
Sales returns and allowances ................................ 16,000
Transportation-in .................................................... 12,400
Transportation-out ................................................. 21,600
Gain on sale of land .................................................. 8,000
Utilities expense ..................................................... 22,400

Required

a. Prepare a schedule to determine the amount of cost of goods sold.

b. Prepare a multistep income statement.

c. Prepare a single-step income statement.