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	$ 103,000	Beginning retained earnings	$ 42,100
Common stock	91,000	Warranties payable (short term)	4,600
Notes receivable (short term)	13,500	Gain on sale of equipment	8,000
Allowance for doubtful accounts	15,000	Operating expenses	46,000
Accumulated depreciation	47,000	Cash flow from investing activities	97,000
Notes payable (long term)	141,000	Prepaid rent	19,000
Salvage value of building	11,000	Land	76,000
Interest payable (short term)	7,000	Cash	44,900
Uncollectible accounts expense	26,000	Inventory	127,000
Supplies	4,600	Accounts payable	36,000
Equipment	206,900	Interest expense	17,000
Interest revenue	4,300	Salaries payable	49,000
Sales revenue	902,000	Unearned revenue	28,000
Dividends	16,000	Cost of goods sold	576,000
Warranty expense	7,300	Accounts receivable	89,000
Interest receivable (short term)	1,700	Depreciation expense