Problem 4-28A Preparing schedule of cost of goods sold and multistep and single-step income statements: Periodic system (Appendix) LO 4-9

The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system.

Account Title	Balance
Sales returns and allowances	$	10,500
Miscellaneous expense		5,100
Transportation-out		18,100
Sales		20,200
Advertising expense		810
Salaries expense		151,000
Transportation-in		2,750
Purchases		18,250
Interest expense		53,500
Merchandise inventory, January 1		321,000
Rent expense		8,100
Merchandise inventory, December 31		6,250
Purchase returns and allowances		10,850
Loss on sale of land		4,100
Utilities expense		11,300

Required a. Prepare a schedule to determine the amount of cost of goods sold. (Amounts to be deducted should be indicated with minus sign.) KING CO. Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2 Cost of goods available for sale 0 Cost of goods sold $ 0 b. Prepare a multistep income statement. KING CO. Income Statement For the Year Ended December 31, Year 2 Sales Net sales $- 0 s. 0 Operating expenses Total operating expense 0 $ 0 Non-operating items c. Prepare a single-step income statement. KING CO. Income Statement For the Year Ended December 31, Year 2 Sales Net sales $ 0 Operating expenses s Total expenses 0 Non-operating items Net income (loss) $ 0