Accounting 5205

Problem 3-24 Preparing a schedule of cost of goods sold and multistep and single- step income statements: Periodic system (Appendix) The following account titles and balances were taken from the adjusted trial balance of King Co. for 2018. The company uses the periodic inventory system. Account Title Balance Sales returns and allowances Miscellaneous expense Transportation-out Sales Advertising expense Salaries expense Transportation-in Purchases Interest expense Merchandise inventory, January 1 Rent expense Merchandise inventory, December 31 Purchase returns and allowances Loss on sale of land Utilities expense $ 3,500 900 2,200 156,300 6,200 21,000 3,800 88,000 250 11,200 12,000 10,700 2,100 3,100 1,850 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