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

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.

Transcribed Image Text:

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