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	$ 115,000	Beginning retained earnings	$ 54,100
Common stock	103,000	Warranties payable (short term)	5,800
Notes receivable (short term)	25,500	Gain on sale of equipment	12,000
Allowance for doubtful accounts	12,000	Operating expenses	58,000
Accumulated depreciation	59,000	Cash flow from investing activities	109,000
Notes payable (long term)	153,000	Prepaid rent	31,000
Salvage value of building	14,000	Land	88,000
Interest payable (short term)	9,000	Cash	50,700
Uncollectible accounts expense	38,000	Inventory	102,000
Supplies	5,800	Accounts payable	48,000
Equipment	229,700	Interest expense	29,000
Interest revenue	5,500	Salaries payable	61,000
Sales revenue	926,000	Unearned revenue	40,000
Dividends	13,000	Cost of goods sold	588,000
Warranty expense	8,500	Accounts receivable	101,000
Interest receivable (short term)	2,900	Depreciation expense	2,300