Required Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Salaries expense $ 106,000

Beginning retained earnings $ 45,100

Common stock 94,000

Warranties payable (short term) 4,900

Notes receivable (short term) 16,500

Gain on sale of equipment 10,000

Allowance for doubtful accounts 18,000

Operating expenses 49,000

Accumulated depreciation 50,000

Cash flow from investing activities 100,000

Notes payable (long term) 144,000

Prepaid rent 22,000

Salvage value of building 14,000

Land 79,000

Interest payable (short term) 5,000

Cash 35,600

Uncollectible accounts expense 29,000

Inventory 130,000

Supplies 4,900

Accounts payable 39,000

Equipment 212,600

Interest expense 20,000

Interest revenue 4,600

Salaries payable 52,000

Sales revenue 908,000

Unearned revenue 31,000

Dividends 19,000

Cost of goods sold 579,000

Warranty expense 7,600

Accounts receivable 92,000

Interest receivable (short term) 2,000

Depreciation expense 1,400