The following information was taken from the accounts of Adams’s Eatery, a delicatessen, at December 31, Year 1. 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.