The following information was taken from the accounts of Helen's Groceries, a delicatessen. The accounts are listed in alphabetical order, and each has a normal balance.
Accounts payable$600
Accounts receivable 400
Advertising expense 200
Cash 410
Common stock 200
Cost of goods sold 600
Interest expense 70
Merchandise inventory 450
Prepaid rent 40
Retained earnings
(Beginning balance) 635
Sales revenue 1,000
Salaries expense 130
Supplies expense 110
Loss on sale of land 25
Required
First, prepare an income statement using the single-step approach. Then prepare another income statement using the multi-step approach.