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 Common Stock Notes Receivable short tern) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings $ 87,000 Operating Expenses 100,000 Cash Flow from Investing Activities 42,000 Prepaid Rent 9,600 Land 9,900 Cash 3,000 Inventory 7,200 Accounts Payable 392,000 Salaries Payable 5,300 Cost of Goods Sold 3.300 Accounts Receivable 90,000 $ 80,000 96,400 14,300 58,00 49,900 100,180 64.00 30,000 166,000 74,00 SHERMAN EQUIPMENT CO. Income Statement For the Year Ending December 31, Year 2 0 Operating Expenses 0 0 Non-Operating Items $ 0 SHERMAN EQUIPMENT CO. Balance Sheet As of December 31, Year 2 Assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current Liabilities Total Liabilities Stockholders' Equity $ 0 Total Stockholders' Equity 0 0 Total assets $ 0 Liabilities and Stockholders' Equity Current Liabilities $ Total Liabilities Stockholders' Equity $ 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 0 $ 0