Prepare a multiple-step income statement for Sagebrush Company for the year ended July 31,2012. The merchandise inventory as of July 31,2012, was $80,000.

Appendix PR S-10A Periodic inventory accounts, multiple-step income statement, closing entries On July 31, 2012, the balances of the accounts appearing in the ledger of Sage brush Company are as follows: Cash 18,300 Sales Returns and Allowances 72,000 Sales Discounts $12,000 Accounts Receivable 8,000 700,000 6,000 4,000 30,000 300,000 55,000 Merchandise Inventory, Purchases Purchases Returns and Allowances Purchases Discounts Freight In Sales Salaries Expense Advertising Expense Delivery Expense August 1, 2011 90,000 3,000 4,500 300,000 270,000 Office Supplies Prepaid Insurance Land Store Equipment Accumulated Depreciation- 9,000 Store Equipment Office Equipment Accumulated Depreciation- 55,900 Depreciation Expense- 78,500 Store Equipment 6,000 10,000 150,000 30,000 Office Equipment Accounts Payable Salaries Payable Unearned Rent Notes Payable Capital Stock Retained Earnings Dividends Sales 16,000 27,800 3,000 8,300 50,000 80,000 Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense Depreciation Expense- 3,000 Office Equipment Miscellaneous Administrative Expense 275,300 3,500 35,000 Rent Revenue 1,660,000 Interest Expense 2,000