The following account titles and balances were taken from the adjusted trial balance of Brisco Farm Co. for 2012. The company uses the periodic inventory system.

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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Account Title Sales returns and allowances Miscellaneous expense Transportation-out Sales Advertising expense Salaries expense Balance $ 3,250 400 700 69,750 2,750 8,500 Transportation-in 1,725 Purchases 42,000 Interest expense 360 Merchandise inventory, January 1 6,200 Rent expense 5,000 Merchandise inventory, December 31 4,050 Purchase returns and allowances 1,250 Loss on sale of land. 3,400 Utilities expense 710