Use the following information to prepare a multistep income statement and a classified balance sheet for Huggins Equipment Co. for2013.

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Salaries expense Common stock Notes receivable (short term) Allowance for doubtful accounts Accumulated depreciation Notes payable (long term) Salvage value of building Interest payable (short term) Uncollectible accounts expense Supplies Equipment Interest revenue Sales revenue Dividends Warranty expense Interest receivable (short term) 70,150 1,500 8,500 75,000 125,000 12,200 50,000 26,300 109,500 32,000 8,600 5,200 26,300 236,000 56,000 1,000 65,000 Beginning retained earnings 50,000 Warranties payable (short term) 15,000 Gain on sale of equipment 6,500 Operating expenses 42,300 110,000 Prepaid rent Cash flow from investing activities 6,000 Land 1,500 Cash 8,650 Inventory 1,800 Accounts payable 93,500 Interest expense 3,600 Salaries payable 420,000 Unearned revenue 10,000 8,400 Cost of goods sold Accounts receivable 600 Depreciation expense