The following information was taken from the accounts of Adams’s Eatery, a delicatessen, at December 31, 2016. The accounts are listed in alphabetical order, and each has a normal balance.

Accounts payable .........$1,200

Accounts receivable ........ 800

Advertising expense ........ 400

Cash ............... 820

Common stock ......... 400

Cost of goods sold ........ 1,200

Interest expense .......... 140

Loss on sale of land ......... 50

Merchandise inventory ........ 900

Prepaid rent ............ 80

Rent expense ........... 220

Retained earnings ......... 1,000

Salaries expense ........... 260

Sales revenue ........... 2,000

Required

First, prepare an income statement for the year using the single-step approach. Then prepare another income statement using the multistep approach.