Problem 7-21A Multistep income statement and balance sheet LO 7-1, 7-5

Problem 7-21A Multistep income statement and balance sheet LO 7-1, 7-5 Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2. (Hint Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.) Salaries Expense Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings $ 76,000 Operating Expenses 100,000 Cash Flow from Investing Activities 31,000 Prepaid Rent 8,500 Land 8,800 Cash 1,900 Inventory 6,109 Accounts Payable 348,000 Salaries Payable 4,200 Cost of Goods Sold 2,200 Accounts Receivable 84,500 $ 69,000 85,400 13,200 47,000 48,800 99,000 53,000 19,000 155,000 63,000 SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 0 Operating Expenses 0 0 Non-Operating Items S SHERMAN EQUIPMENT CO. Balance Sheet As of December 31, Year 2 Assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current Liabilities $ 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity S 0