The following information was taken from the accounts of Healthy Foods Market, a small grocery store at December 31, 2011. The accounts are listed in alphabetical order, and all have normal balances.

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

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Accounts payable Accounts receivable Advertising expense Cash Common stock $ 300 1,040 200 820 600 Cost of goods sold 900 Interest expense 140 Merchandise inventory 500 Prepaid rent 280 Retained earnings 1,050 Sales revenue 2,400 Salaries expense 260 Supplies expense 210 Gain on sale of land 75