Problem $9-25$A $($Algo$)$ Multistep income statement and classified balance sheet LO $9-6$

Required

Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Company for Year $1.($Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.$)$

Salaries expense $ $105,000$ Beginning retained earnings $ $44,100$

Common stock $93,000$ Warranties payable $($short term$)4,800$

Notes receivable $($short term$)15,500$ Gain on sale of equipment $9,000$

Allowance for doubtful accounts $17,000$ Operating expenses $48,000$

Accumulated depreciation $49,000$ Cash flow from investing activities $99,000$

Notes payable $($long term$)143,000$ Prepaid rent $21,000$

Salvage value of building $13,000$ Land $78,000$

Interest payable $($short term$)9,000$ Cash $41,700$

Uncollectible accounts expense $28,000$ Inventory $129,000$

Supplies $4,800$ Accounts payable $38,000$

Equipment $210,700$ Interest expense $19,000$

Interest revenue $4,500$ Salaries payable $51,000$

Sales revenue $906,000$ Unearned revenue $30,000$

Dividends $18,000$ Cost of goods sold $578,000$

Warranty expense $7,500$ Accounts receivable $91,000$

Interest receivable $($short term$)1,900$ Depreciation expense $1,300$