Ch. 7: Multistep Income Statement and Balance Sheet: Use the following information to prepare a multistep income statement and a balance sheet for ABC Company for Year 2. (Hint: Some of the items will not appear on either statement.) Operating Expenses Accounts Payable S Land Dividends Beginning Retained Earnings Gain on sale of land Inventory Notes Receivable (short term) Cash Interest Receivable (short term) Cash Flow from Operating Activities Allowance for Doubtful Accounts Sales Revenue $45,000 $48,000 $42,000 $10,000 Accounts Receivable $120,000 Salaries Payable $12,000 Supplies $108,000 Prepaid Rent $14,000 Common Stock $98,200 Cost of Goods Sold $2,300 Salaries Expense $24,600 Unearned Revenue Uncollectible Accounts Expense $5,400 BS $380,000 $9,200 $85,000 $10,500 $4,200 $14,600 $110,000 $224,000 $63,400 $34,000

Ch. 7: Multistep Income Statement and Balance Sheet: Use the following information to prepare a multistep income statement and a balance sheet for ABC Company for Year 2. (Hint: Some of the items will not appear on either statement.)