Problem $7-21$A $($Algo$)$ Multistep income statement and balance sheet LO $7-1,7-5$

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

$($Hint Some of the items will not appear on either statement, and ending retained earnings must be calculated.$)$

Complete this question by entering your answers in the tabs below.

Prepare a multistep income statement for Sherman Equipment Company for year $2.$

Prepare a balance sheet for Sherman Equipment Company for year $2.$

Note: Amounts to be deducted should be indicated with a minus sign. Be sure to list the assets in the order of their liquidity.