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	$ 122,000	Beginning retained earnings	$ 61,100
Common stock	110,000	Warranties payable (short term)	6,500
Notes receivable (short term)	32,500	Gain on sale of equipment	19,000
Allowance for doubtful accounts	19,000	Operating expenses	65,000
Accumulated depreciation	66,000	Cash flow from investing activities	116,000
Notes payable (long term)	160,000	Prepaid rent	38,000
Salvage value of building	21,000	Land	95,000
Interest payable (short term)	6,000	Cash	41,000
Uncollectible accounts expense	45,000	Inventory	101,000
Supplies	6,500	Accounts payable	55,000
Equipment	243,000	Interest expense	36,000
Interest revenue	6,200	Salaries payable	68,000
Sales revenue	940,000	Unearned revenue	47,000
Dividends	20,000	Cost of goods sold	595,000
Warranty expense	9,200	Accounts receivable	108,000
Interest receivable (short term)	3,600	Depreciation expense	3,000

a) Income Statement

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

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