Problem 7-24A 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 Co. for 2016. (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	$	69,000		Operating Expenses	$	62,000
Common Stock		100,000		Cash Flow from Investing Activities		78,400
Notes Receivable (short term)		24,000		Prepaid Rent		12,500
Allowance for Doubtful Accounts		7,800		Land		40,000
Uncollectible Accounts Expense		8,100		Cash		48,100
Supplies		1,200		Inventory		98,300
Interest Revenue		5,400		Accounts Payable		46,000
Sales Revenue		320,000		Salaries Payable		12,000
Dividends		3,500		Cost of Goods Sold		148,000
Interest Receivable (short term)		1,500		Accounts Receivable		56,000
Beginning Retained Earnings		81,000
Format for both financial statements is on Fundamental Financial Accounting Concepts 9e EDMONDS Problem 7-24A Multistep income statement and balance sheet LO 7-1, 7-5