Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1.

Salaries expense .....................................................................................$ 72,000 

Beginning retained earnings ................................................................$134,150
Common stock ............................................................................................50,000 

Warranties payable (short term) ................................................................2,500
Notes receivable (short term) ...................................................................10,000 

Gain on sale of equipment ...........................................................................8,500
Allowance for doubtful accounts .................................................................6,500 

Operating expenses .....................................................................................96,000
Accumulated depreciation ...........................................................................42,300 

Cash flow from investing activities ............................................................125,000
Notes payable (long term) .............................................................................80,000 

Prepaid rent ....................................................................................................14,000
Salvage value of building .................................................................................6,000 

Land ...................................................................................................................70,000
Interest payable (short term) ............................................................................1,500 

Cash ...................................................................................................................26,300
Uncollectible accounts expense .......................................................................7,150 

Inventory ..........................................................................................................110,500
Supplies ................................................................................................................1,800 

Accounts payable ...............................................................................................32,000
Equipment ..........................................................................................................97,500 

Interest expense ..................................................................................................8,600
Interest revenue ..................................................................................................3,600 

Salaries payable ...................................................................................................5,200
Sales revenue ...................................................................................................510,000 

Unearned revenue .............................................................................................26,300
Dividends .............................................................................................................11,500 

Cost of goods sold ............................................................................................310,000
Warranty expense .................................................................................................9,600 

Accounts receivable ............................................................................................56,000
Interest receivable (short term)...............................................................................600 

Depreciation expense ............................................................................................1,000