The following information was taken from the accounts of Green Market, a small grocery store, at December 31, Year 2. The accounts are listed in alphabetical order, and all have normal balances. Accounts payable $800
Accounts receivable 2,250
Advertising expense 600
Cash 1,850
Common stock 2,000
Cost of goods sold 2,950
Interest expense 120
Merchandise inventory 1,250
Prepaid rent 720
Retained earnings, 1/1/Year 2 2,610
Sales revenue 5,600
Salaries expense 960
Rent expense 510
Gain on sale of land 200

Required:
Prepare an income statement for the year using the single-step and multistep approach.

i. Single-Step Income Statement

                       GREEN MARKET

                       Income Statement

             For the Year Ended December 31

Revenues & Gains                           Amounts$

Sales revenue                                   5,600

Gain on sale of land                          200

Total revenue & gains                       5,800

Expenses

Cost of goods sold           (2,950)    

Advertising expense         (600)    

Interest expense                (120)    

Salaries expense                (960)    

Rent expense                      (510)

Total cost and expenses                  (5,140)

Net Income                                        $660

ii. Multistep Income Statement

                    GREEN MARKET  

                   Income Statement

        For the Year Ended December 31

Particulars                                   Amount$

Sales revenue                              5,600  

Cost of goods sold                      (2,950)

Gross margin                               2,650  

Operating expenses

Salaries expense        (960)  

Advertising expense     (600)

Rent expense                 (510)

Total operating expenses           (2,070)

Operating income                         580

Non-operating items

Gain on sale of land       200

Interest Expense            (120)       80

Net Income                                   $660

3rd the reason why is because of management and leadership

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!