Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	44,000
Other (noninventory) assets			176,000
Total liabilities					$	50,820
Common stock						59,229
Retained earnings						84,308
Dividends			8,000
Sales						300,960
Sales discounts			4,605
Sales returns and allowances			19,863
Cost of goods sold			115,842
Sales salaries expense			41,232
Rent expenseSelling space			14,145
Store supplies expense			3,612
Advertising expense			25,582
Office salaries expense			37,620
Rent expenseOffice space			3,612
Office supplies expense			1,204
Totals		$	495,317		$	495,317

On August 31, 2014, merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	129,360
Purchase discounts received		2,717
Purchase returns and allowances		6,209
Costs of transportation-in		3,900

1. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.

2. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.