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	$ 107,000	Beginning retained earnings	$ 46,100
Common stock	95,000	Warranties payable (short term)	5,000
Notes receivable (short term)	17,500	Gain on sale of equipment	11,000
Allowance for doubtful accounts	19,000	Operating expenses	50,000
Accumulated depreciation	51,000	Cash flow from investing activities	101,000
Notes payable (long term)	145,000	Prepaid rent	23,000
Salvage value of building	15,000	Land	80,000
Interest payable (short term)	6,000	Cash	34,500
Uncollectible accounts expense	30,000	Inventory	131,000
Supplies	5,000	Accounts payable	40,000
Equipment	214,500	Interest expense	21,000
Interest revenue	4,700	Salaries payable	53,000
Sales revenue	910,000	Unearned revenue	32,000
Dividends	20,000	Cost of goods sold	580,000
Warranty expense	7,700	Accounts receivable	93,000
Interest receivable (short term)	2,100	Depreciation expense	1,500

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

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