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Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year 2. ( Hint : Some
Use the following information to prepare a multistep income statement and a balance sheet for Sherman 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 | $77,000 | Operating expenses | $70,000 |
---|---|---|---|
Common stock | 100,000 | Cash Flow from investing activities | 86,400 |
Notes receivable (short term) | 32,000 | Prepaid rent | 13,300 |
Allowance for doubtful accounts | 8,600 | Land | 48,000 |
Uncollectible accounts expense | 8,900 | Cash | 48,900 |
Supplies | 2,000 | Inventory | 99,100 |
Interest revenue | 6,200 | Accounts payable | 54,000 |
Sales revenue | 352,000 | Salaries payable | 20,000 |
Dividends | 4,300 | Cost of goods sold | 156,000 |
Interest receivable (short term) | 2,300 | Accounts receivable | 64,000 |
Beginning retained earnings | 85,000 |
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