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Use the following information to prepare a multi-step income statement and a balance sheet for...

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Accounting

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Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2. (Hint Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.) Salaries Expense Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings $ 71,000 100,000 26,000 8,000 8,300 1,400 5,600 328,000 3,700 1,700 82,000 Operating Expenses Cash Flow from Investing Activities Prepaid Rent Land Cash Inventory Accounts Payable Salaries Payable Cost of Goods Sold Accounts Receivable $ 64,000 80,400 12,700 42,000 48,300 98,500 48,000 14,000 150,000 58,000 SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 0 Operating Expenses 0 0 Non-Operating Items $ 0

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