Required
Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016.
Salaries Expense$ ............. 69,000
Common Stock ............... 100,000
Notes Receivable (short term) ........ 24,000
Allowance for Doubtful Accounts ....... 7,800
Uncollectible Accounts Expense ........ 8,100
Supplies ................. 1,200
Interest Revenue .............. 5,400
Sales Revenue .............. 320,000
Dividends ................. 5,000
Interest Receivable (short term) ....... 1,500
Beginning Retained Earnings ......... 81,000
Operating Expenses ............ $62,000
Cash Flow from Investing Activities ..... 78,400
Prepaid Rent .............. 12,500
Land .................. 40,000
Cash .................. 48,100
Inventory ................ 98,300
Accounts Payable ............ 46,000
Salaries Payable .............. 12,000
Cost of Goods Sold ............ 148,000
Accounts Receivable ........... 56,000