Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2.(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 ExpenseCommon StockNotes Receivable (short term)Allowance for Doubtful AccountsUncollectible Accounts ExpenseSuppliesOperating Expenses$ 74,000100,00029,0008,300$ 67,000Cash Flow from Investing ActivitiesPrepaid Rent83,40013,000Land45,0008,600Cash48,6001,700Inventory98,800Interest Revenue5,900Accounts Payable51,000Sales Revenue340,000Salaries Payable17,000Dividends4,000Cost of Goods Sold153,000Interest Receivable (short term)2,000Accounts Receivable61,000Beginning Retained Earnings83,500SHERMAN EQUIPMENT CO.Income StatementFor the Year Ending December 31, Year 2Sales revenueCost of goods soldOperating ExpensesSalaries expenseOperating expensesUncollectible accounts expenseNon-Operating Items$ 74,00067,0008,600$ 340,000153,000187,000149,60037,400< Prev10 of 10Next >

Income Statement: It gives a summary of the revenue earned during the accounting period and expenses…

Use the following information to prepare a multi-step income statement and a balance sheet for Sherman Equipment Co. for Year 2. (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 Common Stock Notes Receivable (short term) Allowance for Doubtful Accounts Uncollectible Accounts Expense Supplies Interest Revenue Sales Revenue Dividends Interest Receivable (short term) Beginning Retained Earnings Operating Expenses $ 74,000 100,000 29,000 $ 67,000 Cash Flow from Investing Activities Prepaid Rent 83,400 13,000 8,300 Land 45,000 8,600 Cash 48,600 1,700 Inventory 98,800 5,900 Accounts Payable 51,000 340,000 Salaries Payable 17,000 4,000 Cost of Goods Sold 153,000 2,000 61,000 83,500 Accounts Receivable