On August 31, Year 1, the general ledger of a company shows a balance for cash of $7,744. Cash receipts yet to be deposited into the checking account total $3,138, and checks written by the academy but not yet processed by the bank total $1,225. The company's balance of cash does not reflect a bank service fee of $15 and interest earned on the checking account of $26. These amounts are included in the balance of cash of $5,842 reported by the bank as of the end of August. Required:

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.