The following account titles and balances were taken from the adjusted trial balance of Gaskin Sales Co. at December 31, 2013. The company uses the periodic inventory method.

Account Title Balance

Advertising expense .............. $ 20,800

Interest expense ............... 10,000

Merchandise inventory, January 1 ........ 36,000

Merchandise inventory, December 31 ........ 40,200

Miscellaneous expense ............. 1,600

Purchases ................... 300,000

Purchase returns and allowances .......... 5,400

Rent expense ................. 36,000

Salaries expense ................ 106,000

Sales ..................... 640,000

Sales returns and allowances ........... 16,000

Transportation-in ................. 12,400

Transportation-out ............... 21,600

Gain on sale of land .............. 8,000

Utilities expense ................ 22,400

Required

a. Prepare a schedule to determine the amount of cost of goods sold.

b. Prepare a multistep income statement.

c. Prepare a single-step income statement.