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	$ 118,000	Beginning retained earnings	$ 57,100
Common stock	106,000	Warranties payable (short term)	6,100
Notes receivable (short term)	28,500	Gain on sale of equipment	15,000
Allowance for doubtful accounts	15,000	Operating expenses	61,000
Accumulated depreciation	62,000	Cash flow from investing activities	112,000
Notes payable (long term)	156,000	Prepaid rent	34,000
Salvage value of building	17,000	Land	91,000
Interest payable (short term)	7,000	Cash	42,400
Uncollectible accounts expense	41,000	Inventory	105,000
Supplies	6,100	Accounts payable	51,000
Equipment	235,400	Interest expense	32,000
Interest revenue	5,800	Salaries payable	64,000
Sales revenue	932,000	Unearned revenue	43,000
Dividends	16,000	Cost of goods sold	591,000
Warranty expense	8,800	Accounts receivable	104,000
Interest receivable (short term)	3,200	Depreciation expense	2,600

Prepare a multistep income statement for Eller Equipment Company for Year 2. (Amounts to be deducted should be indicated with a minus sign.)

Prepare a multistep Balance sheet for Eller Equipment Company for Year 2. (Amounts to be deducted should be indicated with a minus sign.)