The following account titles and balances were taken from the
The following account titles and balances were taken from the adjusted trial balance of King Co. for 2016. The company uses the periodic inventory system.
Account Title .............. Balance
Sales returns and allowances ........ $3,500
Miscellaneous expense .......... 900
Transportation-out ............ 2,200
Sales .................. 15,300
Advertising expense ............. 6,200
Salaries expense ............. 21,000
Transportation-in .............. 3,800
Purchases ................ 88,000
Interest expense .............. 250
Merchandise inventory, January 1 ..... 11,200
Rent expense ............... 12,000
Merchandise inventory, December 31 .... 10,700
Purchase returns and allowances ....... 2,100
Loss on sale of land ........... 3,100
Utilities expense ............ 1,850
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.
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