The following are the information for Chun Equipment Co. for 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.)

Salaries expense	$	122,420		Interest receivable (short term)	$	640
Common stock		52,000		Beginning retained earnings		51,193
Notes receivable (short term)		16,150		Operating expenses		94,060
Allowance for doubtful accounts		6,980		Cash flow from investing activities		(103,210	)
Accumulated depreciation		34,800		Prepaid rent		13,900
Notes payable (long term)		123,360		Land		47,400
Salvage value of equipment		6,670		Cash		24,050
Interest payable (short term)		2,530		Inventory		161,560
Uncollectible accounts expense		13,920		Accounts payable		57,290
Supplies		3,130		Interest expense		32,450
Office equipment		78,930		Salaries payable		11,190
Interest revenue		5,600		Unearned revenue		59,760
Sales revenue		519,590		Cost of goods sold		186,013
Dividends		12,000		Accounts receivable		112,530
Rent expense		5,140

Required

Prepare a multistep income statement and balance sheet for Chun Equipment Co. for 2018.

Prepare a multistep income statement for Chun Equipment Co. for 2018.

CHUN EQUIPMENT CO.
Income Statement
For the Year Ended December 31, 2018
Sales revenue
Cost of goods sold
Gross margin
Operating expenses
Operating expenses
Rent expense
Salaries expense
Total operating expenses		0
Operating income
Non-operating Items
Interest expense
Interest revenue
Total non-operating items		0
Net income

Prepare the balance sheet for Chun Equipment Co. for 2018. (Be sure to list the assets in the order of their liquidity.)

CHUN EQUIPMENT CO.
Balance Sheet
As of December 31, 2018
Assets
Current assets
Cash
Less: Allowance for doubtful accounts		0
Interest receivable
Inventory
Prepaid rent
Supplies
Notes receivable
Total current assets			$0
Property, plant and equipment
Office equipment
Less: Accumulated depreciation		0
Land
Total property, plant and equipment			0
Total assets			$0
Liabilities and stockholders equity
Current liabilities
Accounts payable
Interest payable
Salaries payable
Unearned revenue
Total current liabilities			$0
Long-term liabilities
Notes payable
Total long-term liabilities			0
Total liabilities			0
Stockholders equity
Common stock
Retained earnings
Total stockholders equity			0
Total liabilities and stockholders equity			$0