Required Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Company for Year 2. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Salaries expense	$ 111,000	Beginning retained earnings	$ 50,100
Common stock	99,000	Warranties payable (short term)	5,400
Notes receivable (short term)	21,500	Gain on sale of equipment	15,000
Allowance for doubtful accounts	23,000	Operating expenses	54,000
Accumulated depreciation	55,000	Cash flow from investing activities	105,000
Notes payable (long term)	149,000	Prepaid rent	27,000
Salvage value of building	10,000	Land	84,000
Interest payable (short term)	5,000	Cash	49,100
Uncollectible accounts expense	34,000	Inventory	111,000
Supplies	5,400	Accounts payable	44,000
Equipment	222,100	Interest expense	25,000
Interest revenue	5,100	Salaries payable	57,000
Sales revenue	918,000	Unearned revenue	36,000
Dividends	24,000	Cost of goods sold	584,000
Warranty expense	8,100	Accounts receivable	97,000
Interest receivable (short term)	2,500	Depreciation expense	1,900