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	$ 109,000	Beginning retained earnings	$ 48,100
Common stock	97,000	Warranties payable (short term)	5,200
Notes receivable (short term)	19,500	Gain on sale of equipment	13,000
Allowance for doubtful accounts	21,000	Operating expenses	52,000
Accumulated depreciation	53,000	Cash flow from investing activities	103,000
Notes payable (long term)	147,000	Prepaid rent	25,000
Salvage value of building	17,000	Land	82,000
Interest payable (short term)	8,000	Cash	35,300
Uncollectible accounts expense	32,000	Inventory	130,000
Supplies	5,200	Accounts payable	42,000
Equipment	218,300	Interest expense	23,000
Interest revenue	4,900	Salaries payable	55,000
Sales revenue	914,000	Unearned revenue	34,000
Dividends	22,000	Cost of goods sold	582,000
Warranty expense	7,900	Accounts receivable	95,000
Interest receivable (short term)	2,300	Depreciation expense	1,700