The following account titles and balances were taken from the adjusted trial balance of Scoggins Sales Co. at December 31, 2011. 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.

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Account Title Balance Advertising expense Interest expense $ 10,400 5,000 Merchandise inventory, January 1 18,000 Merchandise inventory, December 31 20,100 Miscellaneous expense 800 Purchases 150,000 Purchase returns and allowances 2,700 Rent expense 18,000 Salaries expense 53,000 Sales 320,000 Sales returns and allowances 8,000 Transportation-in 6,200 Transportation-out 10,800 Gain on sale of land 4,000 Utilities expense 11,200