Problem 7-21A Multistep income statement and balance sheet LO 7-1, 7-5

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	$	75,000			Operating Expenses	$	68,000
Common Stock		100,000			Cash Flow from Investing Activities		84,400
Notes Receivable (short term)		30,000			Prepaid Rent		13,100
Allowance for Doubtful Accounts		8,400			Land		46,000
Uncollectible Accounts Expense		8,700			Cash		48,700
Supplies		1,800			Inventory		98,900
Interest Revenue		6,000			Accounts Payable		52,000
Sales Revenue		344,000			Salaries Payable		18,000
Dividends		4,100			Cost of Goods Sold		154,000
Interest Receivable (short term)		2,100			Accounts Receivable		62,000
Beginning Retained Earnings		84,000

. AT&T 6:37 PM Input page title Re-edit Image Word SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 0 Operating Expenses 0 0 Non-Operating Items $ 0 13/14 Rotate Markup Share Signature More . AT&T 6:37 PM