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

Required a. Prepare a schedule to determine the amount of cost of goods sold. (Amounts to be deducted should be indicated with minus sign.)

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 0 Operating expenses Total operating expense 0 $ 0 Non-operating items $ 0 c. Prepare a single-step income statement. KING CO. Income Statement For the Year Ended December 31, Year 2 Sales $ 0 Net sales Operating expenses 0 Total expenses Non-operating items Net income (loss) 0