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

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Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.

Salaries expense .....................................................................................$ 72,000 

Beginning retained earnings ................................................................$134,150
Common stock ............................................................................................50,000 

Warranties payable (short term) ................................................................2,500
Notes receivable (short term) ...................................................................10,000 

Gain on sale of equipment ...........................................................................8,500
Allowance for doubtful accounts .................................................................6,500 

Operating expenses .....................................................................................96,000
Accumulated depreciation ...........................................................................42,300 

Cash flow from investing activities ............................................................125,000
Notes payable (long term) .............................................................................80,000 

Prepaid rent ....................................................................................................14,000
Salvage value of building .................................................................................6,000 

Land ...................................................................................................................70,000
Interest payable (short term) ............................................................................1,500 

Cash ...................................................................................................................26,300
Uncollectible accounts expense .......................................................................7,150 

Inventory ..........................................................................................................110,500
Supplies ................................................................................................................1,800 

Accounts payable ...............................................................................................32,000
Equipment ..........................................................................................................97,500 

Interest expense ..................................................................................................8,600
Interest revenue ..................................................................................................3,600 

Salaries payable ...................................................................................................5,200
Sales revenue ...................................................................................................510,000 

Unearned revenue .............................................................................................26,300
Dividends .............................................................................................................11,500 

Cost of goods sold ............................................................................................310,000
Warranty expense .................................................................................................9,600 

Accounts receivable ............................................................................................56,000
Interest receivable (short term)...............................................................................600 

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...
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Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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