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	$	122,000		Beginning retained earnings	$	61,100
Common stock		110,000		Warranties payable (short term)		6,500
Notes receivable (short term)		32,500		Gain on sale of equipment		19,000
Allowance for doubtful accounts		19,000		Operating expenses		65,000
Accumulated depreciation		66,000		Cash flow from investing activities		116,000
Notes payable (long term)		160,000		Prepaid rent		38,000
Salvage value of building		21,000		Land		95,000
Interest payable (short term)		6,000		Cash		41,000
Uncollectible accounts expense		45,000		Inventory		101,000
Supplies		6,500		Accounts payable		55,000
Equipment		243,000		Interest expense		36,000
Interest revenue		6,200		Salaries payable		68,000
Sales revenue		940,000		Unearned revenue		47,000
Dividends		20,000		Cost of goods sold		595,000
Warranty expense		9,200		Accounts receivable		108,000
Interest receivable (short term)		3,600		Depreciation expense		3,000