Required

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

Salaries expense	$ 119,000	Beginning retained earnings	$ 58,100
Common stock	107,000	Warranties payable (short term)	6,200
Notes receivable (short term)	29,500	Gain on sale of equipment	16,000
Allowance for doubtful accounts	16,000	Operating expenses	62,000
Accumulated depreciation	63,000	Cash flow from investing activities	113,000
Notes payable (long term)	157,000	Prepaid rent	35,000
Salvage value of building	18,000	Land	92,000
Interest payable (short term)	8,000	Cash	41,300
Uncollectible accounts expense	42,000	Inventory	106,000
Supplies	6,200	Accounts payable	52,000
Equipment	237,300	Interest expense	33,000
Interest revenue	5,900	Salaries payable	65,000
Sales revenue	934,000	Unearned revenue	44,000
Dividends	17,000	Cost of goods sold	592,000
Warranty expense	8,900	Accounts receivable	105,000
Interest receivable (short term)	3,300	Depreciation expense	2,700

Prepare a multistep income statement for Eller Equipment Company for Year 1. Prepare a classified Balance sheet for Eller Equipment Company for Year 1. Note: Amounts to be deducted should be indicated with a minus sign