Multiple Step and Single Step Income Statements Included in the December 31, 2007 adjusted trial balance of the Gold Company are the following accounts:

Cost of goods sold

$101,000

Sales

200,000

General and administrative expenses

20,000

Loss from strike (pretax)

9,000

Selling expenses

$28,000

Sales returns and allowances

5,000

Interest revenue

4,000

Extraordinary loss (pretax)

17,000

Additional data:

1. Seven thousand shares of common stock have been outstanding the entire year.

2. The income tax rate is 30% on all items of income.

Required

1. Prepare a 2007 multiple step income statement.

2. Prepare a 2007 single step income statement.