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The following information pertains to 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 $ $121,000$ Beginning retained earnings $ $60,100$

Common stock $109,000$ Warranties payable $($short term$)6,400$

Notes receivable $($short term$)31,500$ Gain on sale of equipment $18,000$

Allowance for doubtful accounts $18,000$ Operating expenses $64,000$

Accumulated depreciation $65,000$ Cash flow from investing activities $115,000$

Notes payable $($long term$)95,950$ Prepaid rent $37,000$

Salvage value of building $20,000$ Land $94,000$

Interest payable $($short term$)5,000$ Cash $42,100$

Uncollectible accounts expense $44,000$ Inventory $100,000$

Supplies $6,400$ Accounts payable $54,000$

Equipment $178,050$ Interest Expense $35,000$

Interest revenue $6,100$ Salaries payable $67,000$

Sales revenue $938,000$ Unearned revenue $46,000$

Dividends $19,000$ Cost of goods sold $594,000$

Warranty expense $9,100$ Accounts receivable $107,000$

Interest receivable $($short term$)3,500$ Depreciation expense $2,900$

Required

Prepare a multistep income statement for Eller Equipment Company for Year $1.$

Prepare a classified balance sheet for Eller Equipment Company for Year $1.$

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