Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for Year 2.

Transcribed Image Text:

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 Operating Expenses $ 69,000 100,000 Cash Flow from Investing Activities 24,000 Prepaid Rent 7,800 Land 8,100 Cash 1,200 Inventory 5,400 Accounts Payable Salaries Payable Cost of Goods Sold Accounts Receivable 320,000 3,500 1,500 81,000 $ 62,000 78,400 12,500 40,000 48,100 98,300 46,000 12,000 148,000 56,000