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