Required Use the following information to prepare a multistep income statement and a classified balance sheet for

Question:

Required
Use the following information to prepare a multistep income statement and a classified for Eller Equipment Co. for 2016.
Salaries expense ............ $ 72,000
Common stock ............ 50,000
Notes receivable (short term) ..... 10,000
Allowance for doubtful accounts ..... 6,500
Accumulated depreciation ....... 42,300
Notes payable (long term) ....... 80,000
of building ........ 6,000
Interest payable (short term) ...... 1,500
Uncollectible accounts expense ..... 7,150
Supplies ............... 1,800
Equipment .............. 97,500
Interest revenue ............ 3,600
Sales revenue ............. 510,000
Dividends .............. $ 11,500
Warranty expense ........... 9,600
Interest receivable (short term) ....... 600
Beginning retained earnings ......... $134,150
Warranties payable (short term) ....... 2,500
Gain on sale of equipment ........ 8,500
Operating expenses ............ 96,000
Cash flow from investing activities ...... 125,000
Prepaid rent ............... 14,000
Land ................. 70,000
Cash ................ 26,300
Inventory .............. 110,500
Accounts payable ............ 32,000
Interest expense ............ 8,600
Salaries payable ............ 5,200
Unearned revenue ........... 26,300
Cost of goods sold ........... 310,000
Accounts receivable ........... 56,000
Depreciation expense ........... 1,000
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...