Below information pertains to Vernon Company for the year 2014. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Operating expenses

$

54,000

Cash

$

49,100

Land

84,000

Interest receivable (short term)

2,500

Accumulated depreciation

55,000

Cash flow from investing activities

(105,000

)

Accounts payable

44,000

Allowance for doubtful accounts

23,000

Unearned revenue

36,000

Interest payable (short term)

5,000

Warranties payable (short term)

5,400

Sales revenue

918,000

Equipment

105,000

Uncollectible accounts expense

34,000

Notes payable (long term)

149,000

Interest expense

25,000

Salvage value of equipment

10,000

Accounts receivable

97,000

Dividends

24,000

Salaries payable

57,000

Warranty expense

8,100

Supplies

5,400

Beginning retained earnings

50,100

Prepaid rent

27,000

Interest revenue

5,100

Common stock

99,000

Gain on sale of equipment

15,000

Cost of goods sold

584,000

Inventory

111,000

Salaries expense

111,000

Notes receivable (short term)

21,500

Building

119,000

Prepare a multistep income statement for Vernon Company for 2014.

VERNON COMPANY
Multistep Income Statement
For the Year Ended December 31, 2014
Operating expenses
Total operating expenses
Non-operating Items
Total non-operating items