Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year 2. (Hint. Some of the items will not appear on either statement, and ending retained earnings must be calculated.) 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 Cash Flow from investing activities Prepaid rent $ 80,000 100,000 35,000 8,900 Land 9,200 Cash 2,300 Inventory 6,500 364,000 4,600 Cost of goods sold 2,600 86,500 Accounts payable Salaries payable Accounts receivable $ 73,000 89,400 13,600 51,000 49,200 99,400 57,000 23,000 159,000 67,000 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prepare a multistep income statement for Sherman Equipment Company for Year 2.

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Activities Required In Completing A Quality Audit
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Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year
2. (Hint. Some of the items will not appear on either statement, and ending retained earnings must be calculated.)
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
Cash Flow from investing activities
Prepaid rent
$ 80,000
100,000
35,000
8,900
Land
9,200
Cash
2,300
Inventory
6,500
364,000
4,600
Cost of goods sold
2,600
86,500
Accounts payable
Salaries payable
Accounts receivable
$ 73,000
89,400
13,600
51,000
49,200
99,400
57,000
23,000
159,000
67,000
Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Prepare a multistep income statement for Sherman Equipment Company for Year 2.
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Transcribed Image Text:Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Company for Year 2. (Hint. Some of the items will not appear on either statement, and ending retained earnings must be calculated.) 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 Cash Flow from investing activities Prepaid rent $ 80,000 100,000 35,000 8,900 Land 9,200 Cash 2,300 Inventory 6,500 364,000 4,600 Cost of goods sold 2,600 86,500 Accounts payable Salaries payable Accounts receivable $ 73,000 89,400 13,600 51,000 49,200 99,400 57,000 23,000 159,000 67,000 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prepare a multistep income statement for Sherman Equipment Company for Year 2. <Prev 7 of 7 Next
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