The following are the information of Chun Equipment Co$.$ for Year $2.($Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.$)$

Salaries expense $ $121,990$ Interest receivable $($short term$)$ $ $730$

Common stock $50,500$ Beginning retained earnings $50,397$

Notes receivable $($short term$)17,310$ Operating expenses $87,200$

Allowance for doubtful accounts $7,170$ Cash flow from investing activities $(96,170)$

Accumulated depreciation $33,600$ Prepaid rent $14,270$

Notes payable $($long term$)124,590$ Land $47,200$

Salvage value of equipment $6,570$ Cash $20,660$

Interest payable $($short term$)3,230$ Inventory $164,380$

Uncollectible accounts expense $14,220$ Accounts payable $57,960$

Supplies $3,000$ Interest expense $30,320$

Office equipment $79,900$ Salaries payable $11,920$

Interest revenue $5,960$ Unearned revenue $59,470$

Sales revenue $507,170$ Cost of goods sold $181,567$

Dividends $11,200$ Accounts receivable $113,350$

Rent expense $4,670$

Required

Prepare a multistep income statement and balance sheet for Chun Equipment Co$.$ for Year $2.$