The following selected information is for Sunland Company for the year ended January 31, 2021: Freight in $6,500 Purchase discounts $12,000 Freight out 7,300 Purchase returns and allowances 16,100 Insurance expense 12,000 Rent expense 20,100 Interest expense 6,000 Salaries expense 60,500 Merchandise inventory, beginning 61,500 Salaries payable 2,500 Merchandise inventory, ending 42,000 Sales 325,000 O. G. Pogo, capital 105,000 Sales discounts 14,000 O. G. Pogo, drawings 42,200 Sales returns and allowances 20,100 Purchases 213,000 Unearned sales revenue 4,500

(a) Prepare a multiple-step income statement.